Credit Counselling in British Columbia, BC
There’s no denying that financial distress causes a lot of problems, both for those with debts and their immediate family members.
Debt is not a new problem, but it is a growing one for thousands of individuals in Canada.
According to the latest statistics from Statistics Canada, the average debt to income ratio is 175.23.
What that means is for every $1 a Canadian earns, they will owe $1.75.
As you can imagine, that is a big issue – especially for those with a limited income.
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The statistics also show that families with a high debt to income ratio are more likely to skip or delay their mortgage payments.
Those families could end up with their homes getting foreclosed by their mortgage lenders if that happens often.
British Columbia (BC) is a province that is currently home to approximately 5.07 million people.
Data from Statistics Canada also shows that BC is one of the wealthiest provinces in the country.
But, the data suggests that BC has one of the highest levels of debt to income ratios.
In fact, it was around 210% on average of a person’s after-tax income.
Why it’s needed
Although debt is manageable for some people in BC, for others, it’s a leading cause of stress, frustration, and despair.
The sad truth is some individuals living in BC are unaware of how to improve their debt situations.
It’s also important to note that some individuals may not even realize they have a debt problem until it reaches a critical level.
Thankfully, all is not lost because credit counselling can help tackle the problem head-on and find practical solutions.
If you’re unsure whether your debt has reached a critical stage, here are some telltale signs:
- You are struggling to repay your debts each month.
- You’ve missed one or more payments on your mortgage or rent.
- You find yourself borrowing money from payday lenders each month.
- You’re unable to cover the cost of your family’s monthly food expenditure.
- Demands for payment are an almost daily occurrence.
BC credit counselling can help you to determine how bad your financial situation has become.
Plus, you can learn about the best available options open to you for tackling your debts.
How can BC credit counselling help?
If you’ve never heard of counselling before, or perhaps don’t know how such a service can help, you might feel apprehensive about such an approach.
You are taking an important first step to financial stability when you speak with an expert on credit counselling.
There are several ways that counselling can help you with your financial situation, regardless of how severe it has become.
Here are some examples of what our experts can do for you:
Create an overview of your current financial situation
The first step to determining the severity of your debt problem is by creating an overview of it all.
Sadly, some people experiencing debt problems don’t have an accurate list of their debtors and what they owe to each lender.
Having a clearly-defined overview will show what you owe plus what you’re expected to pay each month.
Review your debt resolution options
Once you’ve got a complete understanding of your financial situation, the next step is to determine which of the various debt resolution options will work best for you.
For some people, this could be something as simple as a debt consolidation loan.
Other options include a consumer proposal and bankruptcy.
When you discuss your situation with our experts, they will work with you to find out which option is most likely to succeed in resolving your debt crisis.
Create a budget to manage future outgoings
Another way that BC credit counselling can help is by working with you to draw up a realistic budget.
When you get your finances in order, you must have a budget that you can easily achieve each month.
The last thing you want to do is agree to a budget that you might find is tough to stick to each month.
Otherwise, you could end up with another debt problem you need to resolve.
Which debt resolution options are right for me?
It’s crucial to find a way of dealing with your debts most efficiently and agreeably for both yourself and your creditors.
BC credit counselling professionals will work with you to decide the best option from the following:
Debt consolidation
Debt consolidation is when you take out a large loan to pay off several smaller debts.
The advantage of doing so is that you can significantly reduce your monthly outgoings, and you only have one creditor to pay.
But it’s worth considering the disadvantages as well.
You may find that you sacrifice the low interest rates of existing borrowing for the sake of smaller monthly payments.
Plus, debt consolidation may not be a viable option if you’ve got a bad credit score.
Consumer proposal
When agreed with your creditors, a consumer proposal allows you to pay back a small percentage of your debt over a fixed period.
Typically, that period is around five years.
Once you’ve successfully paid back the agreed sums, you get discharged from your debts.
Bankruptcy
Bankruptcy works similarly to consumer proposals but with some subtle differences.
For example, your assets get taken into consideration when working out how much you can pay back with bankruptcy.
But, they aren’t included when arranging a consumer proposal.
And instead of getting discharged from your debts after five years, like with a consumer proposal, you could end up being debt-free after just nine months.
What should I do next?
You’ve made the right decision by researching how you can resolve your debt problems.
The next step is to contact one of our services for help and support.
To discuss your financial situation, contact us today at (877) 879-4770.
We’ll put you in touch with a licensed expert in your area.
All calls are confidential, and there’s no risk or obligation to take up any of our services.
We don’t provide legal advice, but we provide professional and licensed guidance on dealing with credit and debt issues.
Consumer credit counselling can help you deal with money problems such as credit card debt or harassing collection calls.
We are licensed by the government and represented by the better business bureau.
The credit counselling society is happy to work with friendly and caring professionals, who are interested in helping you get out of debt once and for all.
If you are looking for debt settlement assistance we are here for you when you are ready.
