With the rise in living costs and debt becoming a common problem for many, financial management has become a necessity. Credit Counselling in Red Deer provides the much-needed guidance to help individuals navigate their financial woes.
Understanding Credit Counselling
Credit Counselling is a professional service provided by trained counsellors who offer advice to individuals struggling with debt. They offer support by helping devise a debt management and repayment strategy, negotiate with creditors, and provide guidance on bankruptcy and alternatives.
Role of a Credit Counsellor
A credit counsellor:
- Reviews your income, assets, spending plans, regular expenses, and other financial information.
- Helps you devise a long-term debt management and repayment strategy.
- Negotiates with your creditors to secure lower interest rates and late fee waivers.
- Provides information about Consumer Proposals – an alternative to Bankruptcy.
- Provides guidance on personal Bankruptcy.
Credit Counselling Services in Red Deer, AB
In Red Deer, several organizations provide credit counselling services. They offer advice on broader financial issues, including general budgeting and money management, mortgage problems, and credit card issues.
Alternatives to Credit Counselling
If your financial situation has become serious and counselling alone is not helping to manage your debt, consider other types of debt relief, including:
- Consumer Proposal: A negotiated settlement where the debtor offers to make monthly payments for a period of time, with the funds distributed amongst their creditors.
- Bankruptcy: The legal status of being unable to pay debts that are due.
Understanding Consumer Proposal and Bankruptcy
Consumer Proposal
A Consumer Proposal is a negotiated settlement where the debtor makes monthly payments over a maximum period of five years. Creditors typically agree if they believe that the debtor is in genuine financial difficulty but can make payments.
Bankruptcy
Bankruptcy is the legal status of being unable to pay debts. You make a formal declaration and become legally bankrupt for a period of time, before eventually being discharged and becoming legally solvent once more.
How a Licensed Insolvency Trustee can help
Licensed Insolvency Trustees (LITs) are trained and regulated by the federal government. They are the only professionals legally able to administer Bankruptcies in Canada. LITs negotiate directly with creditors and assume responsibility for selling your assets and holding the funds in trust, for subsequent distribution to creditors.
Choosing a Credit Counselling Service in Red Deer, AB
If you live in Red Deer, and are struggling to meet your financial commitments, consider seeking advice and support from Allan Marshall & Associates Inc. Our LITs are professionals in all areas of debt support, from credit counselling to Bankruptcy offers.
Conclusion
Credit Counselling in Red Deer offers a way out for those struggling with debt. With the help of trained professionals, individuals can navigate their financial difficulties and find a path to financial stability.
