Credit Counselling Alberta

Alberta Credit Counselling: An Overview

Credit counselling in Alberta is a professional service provided by numerous non-profit organizations. These organizations aim to equip individuals with the necessary tools to manage their debts efficiently, thereby securing a brighter financial future.

Credit counsellors not only help you understand your financial situation, but they also guide you through the process of debt management. They negotiate with your creditors, create affordable debt repayment plans, and offer valuable advice on household budgeting. More importantly, they advocate for you, ensuring you receive the most favourable terms possible.

The Rise of Consumer Debt in Alberta

Over the past few years, consumer debt in Alberta has risen at an alarming rate, outpacing the national average. Statistics Canada reported that in the second quarter of 2022, the average level of consumer debt in Alberta was $59,869, over $13,000 higher than the national average.

These rising debt levels have urged many Albertans to seek credit counselling services in the province. By doing so, they hope to regain control over their financial situation and reduce their debt levels.

Credit Counselling Process in Alberta

The credit counselling process in Alberta is designed to provide a holistic approach to debt management. Recognizing that many credit problems stem from a lack of understanding and budgeting skills, credit counselling addresses these issues head-on.

The process typically involves the following steps:

• Assessment: An initial meeting with a credit counsellor to understand your financial situation.
• Budgeting: Advice on creating a realistic and effective household budget.
• Debt Repayment Plan: Creation of an affordable debt repayment plan tailored to your specific needs.
• Negotiation: Advocacy with creditors to negotiate repayment plans and lower interest rates.
• Ongoing Support: Continuous guidance and monitoring of the repayment program.

Identifying the Need for Credit Counselling

How do you know if you need credit counselling in Alberta? It can be incredibly effective if you’re struggling with debt. Here are a few signs that you might need to seek help:

• You are regularly contacted by collections agencies regarding unpaid debts.
• You often have to borrow money from one creditor to repay another.
• You are unable to make the minimum monthly payments on your debts.
• You struggle to secure new loans for major purchases.
• You have little money left over at the end of the month after paying all your debts.

If any of these situations sound familiar, it might be time to consider credit counselling.

The Impact of Economic Downturn on Alberta’s Debt

Alberta’s economy has faced significant adversity in recent years, leading to increased unemployment rates and financial instability. The oil price crash followed by the COVID-19 pandemic has had a profound impact on Alberta’s economy and its residents’ financial situation.

The long-term unemployment and job losses have led to 52% of Albertans having just $200 before they will be unable to pay their bills. Over 28% have increased their debt during the pandemic, despite government aid and incentives. This has resulted in an increased number of consumers seeking non-profit credit counselling services in Alberta.