If you’re feeling overwhelmed with debt, credit counselling can help you get your finances under control. A credit counsellor can teach you how to:
- manage your money better,
- identify warning signs of debt problems,
- develop budgeting skills to help manage your spending, and
- use credit wisely so you can stay out of debt.
Consumer credit counselling in Canada can also include debt negotiation with your creditors through a debt management plan. In this scenario, your counsellor contacts your creditors and negotiates an agreement where you repay your debts in full over a period of three to five years. In return, your creditors agree to stop all collection activity, and in many cases, cancel all future interest.
This type of credit and debt counselling can help you pay off your debt sooner by eliminating penalties, fees, and interest on credit card debt, and consolidating debt payments into one easy monthly payment.
Depending on the severity of your debt, credit counselling can help you reduce it, stop creditors from calling, and avoid bankruptcy. It cannot, however, settle your debt for less than you owe. If that is your goal, a consumer proposal may be a better option for you. Learn more about consumer proposals.
Get Credit Counselling Help
Talk to a professional to find out if credit counselling is the right option for you. We recommend that you only deal with an accredited, experienced, debt consultant. In Canada, this means they should be:
- an accredited credit counsellor, or
- a licensed insolvency trustee, or
- a qualified insolvency counsellor licensed by the Office of the Superintendent of Bankruptcy.
Even if you don’t need to file for bankruptcy, a trustee is one of the most qualified professionals you can talk to. Part of their code of conduct requires that they explain all of your debt relief options. They can also refer you to a qualified credit counselling agency in your area.
For professional debt help that meets all of these criteria, contact an advisor today.