“Tough-love” counseling for borrowers can curb re-defaults by looking critically at how all forms of spending affect a person’s ability to pay off mortgage and credit card debt, according to a subservicer that uses this approach. “Dollars are in competition when a family is in trouble,” said Stephen Stack, managing director of Outreach Financial Services. “There is a struggle between paying different creditors, and holistic counseling helps redistribute the money in the best way.” Holistic financial counseling looks at a borrower’s entire spending pattern – from mortgage to credit card to...