Home Breadcrumb caret Advisor to Client Breadcrumb caret Financial Planning The wrong way to talk about debt Debt is a complicated topic, and talking about it isn’t always easy. Here are some suggestions on how to approach the topic of debt with clients. December 9, 2013 | Last updated on December 9, 2013 2 min read Debt is a complicated topic, and talking about it isn’t always easy. While advisors may feel more comfortable dealing with the topic of debt from a strictly financial perspective, that may not be the way clients experience debt. In a client’s mind, debt is as much an emotional issue as it is a financial one. Advisors who fail to acknowledge and respect the sensitivity some clients may feel about debt could run the risk of alienating them at the moment they need expert advice most. Here are some suggestions on how not to approach the topic of debt with clients. THE WRONG WAY TO TALK ABOUT DEBT Assuming it’s only an issue for some clients Just because someone’s a high income earner, or has a high net worth, doesn’t mean they’re immune from debt problems. Advisors who make debt assumptions based solely on account size may be missing an opportunity to assist some of the highest-value clients in their practices. Ignoring the issue until it’s a problem Many advisors assume clients don’t need debt management strategies or special advice until they’re actually in the middle of a problem. The reality is just the opposite. The best time to provide debt advice is before clients find themselves in real trouble. Advisors who neglect this truism risk making more trouble for themselves down the line. Passing off the problem Referring a client to an accountant or debt counselor may ultimately be a good idea. But such a referral should only happen after conversations and consultations with you. By outsourcing the problem too quickly, you miss out on an opportunity to give a client practical help—and also to discuss what happens after debt gets under control. Lack of follow-up Breaking bad debt habits doesn’t happen overnight. It’s a long-term process, requiring coaching, mentorship, and supervision. Advisors who fail to follow up with clients about progress toward their debt goals risk having those clients fall back into their bad habits. Save Stroke 1 Print Group 8 Share LI logo