Do you desire to establish your own business, yet do not have any money, and cannot leave your job. In that case what you need to know is how to start a credit and debt counseling service. This is a lucrative business, and initially you can work on it in your spare time and, depending on your efforts and hard work can build it into a six figure income business.

You need to be sensitive to people, have some business contacts, do some advertising (your only business expense) and you are all set to start your business. Most people who borrow money are terrified when people from the loan company call them. They are embarrassed to admit that they are having problems managing their money, and instead of seeking help try to cover up the problem, and avoid the very people who want to help them.

It is very important for how to start a credit counseling service to understand how people’s minds work. People do not lend money with the thought of foreclosure. That way everyone loses, the borrower loses his collateral, the lender usually have to settle for a lower amount of what he loaned.

Lending institutions try and do everything possible to help the borrower as long as he shows good faith in attempting to repay the total amount of the loan. To help the borrower, you as a Professional Credit and Debt Counselor must notify the lender about the borrower’s situation

Next for how to start a credit and debt counseling service is to devise a repayment plan. Calculate his income, minus expenses. After expenses the balance can go to settle his debts. Advise him to develop a system like having separate envelopes for each creditor. He can put the money to be paid in an envelope that will be given to the creditor. This very easy method will help the borrower pay off his debts and at the same time retain his credibility.

If the borrower is in serious financial trouble, then advise him to file for relief under the “Wages Earner’s Plan” under chapter 13 of the Federal Bankruptcy Act. This gives the debtor the latitude to reorganize his financial situation without the debt collectors hounding him. Anyone who is capable of earning wages, salaries or commission is entitled to use this plan.