Credit Counseling in Canada
Canadian Credit Counseling Services
If you are at your wit’s end, trying to find ways to pay back your credit card bills, mortgage or rent, or even fear that your car may be repossessed, credit counseling may be just the right option to help you get back on your feet and pay down your debt.
Bankruptcy Canada wants you to have the resources and tools you need, and credit counseling is the first step to providing you these.
If it’s time for you to seek help, credit counseling can be your first step to a brighter financial future from the help of debt and financial professionals.
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What happens if you don’t seek credit counseling?
If you’re finding that you’re taking one step forward, and two steps back while trying to pay down your debt, this can have significant long-term repercussions.
You are likely trying your best to make ends meet, but that’s where a debt professional and financial expert can help you get out of the hole.
Below are just some of the consequences of repeatedly paying your bills late, or not making payments at all:
- A decrease in your credit rating that continues to fall.
- Repossession of your vehicle that you owe money on.
- Inability to get new credit cards, for years to come.
- The loss of your house if you can not make mortgage payments.
- Inability to secure future loans.
- Consumer proposals and bankruptcy.
If you skimmed that list and thought to yourself, “I already know that. I just don’t know what to do,” you’re not alone.
You have resources and tools, and credit counseling will help you learn what they are, and how you can use them.
Recovering from the above-mentioned situation is possible, but it’s a long process and requires significant credit counseling and work.
If you can get ahead of your debt with credit counseling services prior to your debt situation becoming severe, you’ll be able to repair your credit score easier, as well as reduce the possibility of needing to file for bankruptcy, or have your assets repossessed.
Credit counseling can help find the right option for you
Credit counseling services start by sitting down with a financial professional who is experienced in understanding debt, and how to recover from it.
During this time, you and one of our financial experts at Bankruptcy Canada will go over your finances, including your income and expenses.
From there, a long-term plan to recover from your debt will be put together, which includes paying down the debt that will affect you most, budgeting for your financial future, and a plan to stay out of debt.
During credit counseling, your debt expert may work directly with your creditors to see if a settlement can be made or to reduce interest.
At this point, your credit counselor may be able to negotiate an extension of the payment period with your creditors or reduce the monthly payment required so that you are able to continue making payments.
If you are in severe debt, your credit counselor may also discuss the options of consumer proposals or bankruptcies, but will only do so if you are in a dire financial situation.
At every step of the way, your credit counselor at Bankruptcy Canada will work to find the perfect solution for your unique debt situation.
One of the several advantages of credit counseling is that your counselor will provide a non-biased perspective on what you can do to get your finances cleaned up.
Since credit counselors are well versed in debt and finances, they may provide new resources or options you had not previously considered.
Credit counseling is the first step of a long journey to improve your credit and pay down your debt, as well as secure your financial future.
Will credit counseling affect your credit further?
While credit counseling in Canada is meant to help relieve your debt and improve your credit score long-term, it may initially affect your credit score negatively.
As an example, if your credit counselor is able to negotiate a debt settlement agreement, the debt is considered unpaid, but essentially forgiven.
While you can relax that the debt may no longer be owed, it will decrease your credit score.
However, if you are in a scenario in which you are seeking credit counseling, it is likely that your credit is beginning to be affected by late or delinquent payments.
In almost every situation, credit counseling will help your credit long-term.
If you’re on the fence about seeking out credit counseling, contact Bankruptcy Canada for a free consultation to see how we can help you.
Our credit counselors are debt experts that are here to help you find a way out of your debt, and we have locations all across Canada.