Who Should Consumers Trust for Sound Financial Decisions Related to Credit?

Person protecting assets from dominos representing bankruptcy
March 26, 2025

When it comes to financial decisions, especially those involving credit, consumers are often overwhelmed by the number of voices offering advice. With so many professionals in the finance industry—from financial advisers to realtors—it’s crucial to understand their motivations and how they get paid. Here’s a breakdown of the key players and what consumers should keep in mind when deciding whom to trust for financial guidance.

Financial Advisers: Commission-Driven Investments

Financial advisers play an important role in helping consumers manage their money, but it’s important to remember that many of them work on a commission basis. This means they may have a financial incentive to push certain investment products, regardless of whether those products are truly the best fit for your financial situation. While many advisers provide valuable services, the fact that they are paid based on the products they sell means that they are not always fully aligned with your best interests.

Verdict: Be cautious when relying solely on a financial adviser for credit-related decisions. Make sure to ask about their compensation structure and whether they operate under a fiduciary duty, which would require them to put your interests first.

Mortgage Agents and Brokers: Commission-Based Service Providers

Mortgage agents and brokers help consumers navigate the complex world of home loans, but like financial advisers, they are often paid a commission or fee for their services. While they can provide value by finding competitive mortgage rates, their compensation is usually based on securing a loan. This can create a potential conflict of interest, as they may be motivated to recommend loans that earn them higher fees, rather than loans that are best suited to your financial needs.

Verdict: Mortgage brokers and agents can be helpful when shopping for a loan, but it’s essential to understand that their primary motivation is commission-based. Make sure to get multiple quotes and do your own research before committing to any mortgage product.

Bankers: Profit From Your Debt

Banks are in the business of making money from credit. They offer a range of financial products, such as credit cards, loans, and lines of credit, and they generate revenue from the interest and fees you pay. Bankers may present themselves as financial experts, but it’s crucial to remember that their primary role is to sell debt products, not necessarily to help you become financially free. While banks offer a convenient and regulated way to access credit, their profit model is based on consumers carrying and repaying debt.

Verdict: Banks are reliable for offering credit products, but they are primarily motivated by profit. Always approach their advice with an understanding that their goal is to make money from your borrowing.

Realtors: Earning on Property Sales

Realtors help consumers buy and sell homes, and they earn a commission—often around 5%—on the sale price of the property. While a realtor can provide useful insights into the housing market and help you find a suitable home, their commission is tied directly to the transaction value. This means they may have an incentive to encourage you to buy a more expensive home or move forward with a deal, even if it’s not in your best financial interest. Realtors are valuable when navigating the housing market, but their primary goal is to close the sale, which can sometimes conflict with a buyer’s long-term financial goals.

Verdict: Realtors are essential when purchasing or selling a home, but consumers should remain mindful of their financial motivations. Do your own calculations and be realistic about what you can afford.

Bankruptcy Trustees: Neutral Debt Advisers

Of all the financial professionals listed, bankruptcy trustees are the only ones required by law to remain neutral. Their job is to help consumers reduce or eliminate debt, and they do not earn commissions or fees based on the size of your debt or the outcome of the process, their fees have been unchanged for more thirty years and are set by a tariff. Bankruptcy trustees are there to guide you through legal solutions to unmanageable debt, whether that means filing for bankruptcy or finding alternative ways to resolve your financial challenges. Because they are obligated to remain impartial, they are often seen as a trustworthy source of advice when consumers are overwhelmed by debt.

Verdict: If you’re struggling with significant debt, a bankruptcy trustee is one of the most reliable sources of advice. They are neutral, legally obligated to provide objective guidance, and their role is to help you achieve financial relief.

Conclusion: Trust Wisely

When making financial decisions related to credit, it’s essential to understand the motivations behind the advice you’re receiving. While financial advisers, mortgage brokers, bankers, and realtors can all provide valuable services, their compensation structures often create potential conflicts of interest. For truly neutral advice, especially if you’re dealing with significant debt, bankruptcy trustees are one of the few professionals required to act in your best interest.

As a consumer, your best approach is to gather information from multiple sources, understand the incentives of each party, and make an informed decision that aligns with your long-term financial health.