Burnaby Credit Counselling
Credit Counselling in Burnaby, BC
A credit counsellor will help you to achieve positive financial goals.
They will work with you, one-on-one to make sure that you understand your debt, your responsibilities and how you ended up in the situation you are in right now.
They can also provide you with unbiased information along with the options that are available.
They will also remove the fear of the unknown, so you know exactly what is going to happen and when.
Debt Counselling and Common Money Issues
More often than not, credit counsellors find that most of their clients are in debt because of a credit card or an unsecured debt.
It doesn’t matter whether you go through a finance company or whether you have a personal loan, because this is the main reason why people end up seeking credit counselling in Burnaby.
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Why People Seek Credit Counselling
Most people come to the conclusion that they are not able to make the minimum debt payments when there is an imbalance between their big debts and their income stream.
Credit counselling is an option in this instance.
If you feel as though you are losing sleep over where your next payment is going to come from then Burnaby credit counselling is worth looking into.
What to Expect
If you are scared of the unknown, then you may be dreading your first meeting with a credit counsellor.
You don’t need to though because in your first meeting, your counsellor will talk you through what you should expect, and they can also give you the confidence you are looking for throughout the whole process.
The next session will involve them understanding your specific situation.
They will ask you about your employment, your debt, financial goals and more.
When they have a good idea of your financial health in general, they will then work with you to give you a clear plan of action.
How much Debt is Too Much Debt?
A lot of people end up in debt because they don’t know how much debt is classed as being “too much”.
If you live in Canada, then you should know that mortgages will make up most of your debt.
A good rule of thumb is that your mortgage should never exceed 31% of your total gross income.
If you are having a hard time calculating this threshold then your credit provider will be able to work with you to make sure that you are understanding of your mortgage terms and anything else you might need to know.
Of course, when times are tough, you may end up having to rely on your credit card as an additional stream of income.
This may end up costing you way more in the long run if you have a very high-interest rate.
A general rule is, if you can’t pay off your credit card at the end of every month then you are putting too much on there.
What Debt should you Tackle First?
One of the most valuable services that a debt counsellor can provide you with is that they can help you to come up with a debt-repayment plan.
This is an integral part of helping you to understand which debts you should be paying first and why.
When it comes to multiple debts, your home is the most important.
Your rent or your mortgage payments will probably be the highest amount of debt that you have so this is a fantastic place to start.
The next one that should be tackled is your transportation.
If you do not have any transportation, then you may struggle to secure any kind of gainful employment.
After this has been documented, food, medical and other needs are then focused on.
You should focus on your credit card when you have the basic necessities under control.
A credit counsellor will work with you so that you can prioritise your debt and so you also know where to start.
You can then work your way down the list.
Another strategy would be for you to focus on your interest rates.
You need to prioritise your highest interest rates first and then work your way down to the lowest.
What’s a Debt Management Plan?
A credit counsellor will work with you to help you to come up with a debt management plan.
This will help you to pay down your debt while you are maintaining a good quality of life.
Credit counsellors will also advocate for you and work alongside creditors to make sure that you are being given as much support and assistance as possible.
Often, creditors will grant you some degree of concession when they realise that you are working towards your goals and when they see that you are trying to pay down your debt.
Creditors might often lower their interest rate or waive it entirely so that you won’t have to worry about late payment penalties or other types of fee.
This will help you to get your debt under control and it will also help you to establish a solid payment plan that won’t put any additional strain on your financial situation.
Often, a debt management plan will involve you making payments to the counsellor’s firm.
They will then make payments to the creditors.
In instances such as this, you will then receive the documentation to show that the creditors and the agency are working together to try and resolve the situation on your behalf.
This is a very good way for you to make sure that you are getting the support you need without worsening your situation.
If you are in debt and need some support, then it may be worth contacting a credit counselling agency.
When you do, they can then work with you to make sure that you are given the advice you need to dig yourself out of debt.
Contact Bankruptcy Canada to find out more.