What Does a Credit Counsellor Do?

A certified credit counsellor will look over your financial situation. They will most likely need access to income history, your monthly expenses, and copies of bills. They’ll assess your finances, as well as your debt accounts to get a grasp on the interest rates you’re paying. A credit check will be done to see any outstanding items that you’re required to pay. Most importantly, credit counselling will provide you with options or solutions including debt settlements, debt management, budgeting, and consolidation of loans. A non-profit organization will always have your best interests at heart, as they’ll try to help you avoid bankruptcy unless it’s viable for you to do so. Credit counselling can aid in the development of plans to keep your financial situation under control. Counselling could be a helpful first step in getting creditors off your back, as well as alleviating the stresses of debt. It can take some time and patience to get to a place where you’re financially stable again, but it can happen faster with the assistance of a credit counsellor.

What Are the Differences Between Debt Management, Consumer Proposal, and Bankruptcy?

The credit counselling agency can put together a debt management plan, also known as a debt consolidation or repayment program. The plan will entail working with your creditors to create a financial plan. This process includes making scheduled deposits with the credit counselling organization when possible, which then goes toward paying your creditors. A consumer proposal and bankruptcy get filed under Canada’s Bankruptcy and Insolvency Act. While credit counsellors can’t provide these services, they may recommend them based on whether or not they’re appropriate options.

Is a Credit Counsellor Worth it?

A simple answer to this question is yes. A credit counsellor may be worth it if you’d like assistance with credit counselling and debt solutions. You don’t necessarily need to be facing serious debt to receive help from a credit counsellor. Many individuals decide to get one to ensure they’re making wise financial decisions, and others do so to obtain advice or assistance in reducing credit card debt. Hiring a credit counsellor is a good idea for anyone looking to stay on top of their finances, as well as prevent the risk of facing debt. Don’t wait until it’s too late. Credit counselling can be a useful resource in assuring the betterment of your financial future.

Credit Counselling

These days, the cost of living seems to be rising and rising. No matter how hard you try to save or budget your money, your debt may remain a prominent issue. It can cause a lot of stress and anxiety, but luckily, there are debt solutions in which you can rebuild your finances. You may consider credit counselling services if you’re looking for assistance. What exactly is credit counselling? We’ll explain everything you need to know regarding this service.

What Is Credit Counselling?

Credit counselling services is a broad term which describes the process of assisting Canadians with their financial problems, such as debt. A credit counsellor or debt consultant can provide advice and education on money management strategies, in addition to outlining tactics to deal with debt.

However, finding a proper credit counsellor can be a difficult task. Since there are no mandatory educational requirements to become a credit counsellor or debt consultant, finding a professional, certified counsellor can be tricky. As entering into any debt management plan can hurt your credit, it is important to seek advice from Canada’s only professional that is licensed to reduce or eliminate debt – a Licensed Insolvency Trustee.

Licensed Insolvency Trustees are federally licensed and regulated. They have the experience and education required by the government to file a consumer proposal or bankruptcy, and the ability to explain the impact of these options on your situation, whereas credit counselors or debt consultants may not.

When a Licensed Insolvency Trustee provides you with credit counselling services, you can be sure that you will understand all your financial options, and they will point you in the right direction. In many cases, there may be a better solution for you, such as a consumer proposal or bankruptcy.
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Is Credit Counselling My Only Option?

Credit counselling or a debt management plan may not be a wise option for you, but there are other services that can help:

Consumer Proposal: With this option, your debts will be consolidated into affordable monthly payments. This will allow for more flexibility when it comes to settling on an amount to pay each month, as it’s designed to meet your unique needs. A consumer proposal can allow for the negotiation of a reduced total debt balance with your creditors, and making monthly payments on the remaining portion for up to five years. A consumer proposal has the added benefits of avoiding loss of secured assets, no stressful collection calls, and reduction of unsecured debts.

Bankruptcy: While filing for bankruptcy can affect your credit history for 7-14 years, it can have benefits. Bankruptcy can provide faster debt relief, affordable payments, and relief from collection calls. A debt management plan from a credit counsellor can be a 5 year process, with no formal ‘stay of proceedings’ or legislative protection. Only unsecured debts, such as credit cards and payday loans are included in a debt management plan. However, bankruptcy provides options to discharge most of your debts, as well as the option to protect your valued assets. Most people consider “bankruptcy” a bad word, but there are perks to be had with this service. We are more than happy to discuss how a bankruptcy would impact you.

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