Non-Profit Credit Counselling – Debt Help
If you are struggling with debt that you are finding impossible to manage then you can get assistance with a non-profit credit counselling society. Feelings of being overwhelmed and trapped in debt can cause stress and sleepless nights. Many people do not want to consider bankruptcy and you are not alone.
If you are struggling with debt you can take advantage of working with a non-profit credit counsellor.
What is Non-Profit Credit Counselling?
Non-profit credit counselling is a range of services that include budgeting assistance, education on financial affairs, and other assistance with debt problems.
Credit counselling agencies have credit counsellors that can provide assistance in person or on the phone.
To learn more about consumer credit counselling you can make an appointment to speak with a credit counsellor about your debt. Certain agencies may charge a fee for this first meeting, although you can contact one of our Licensed Insolvency Trustees to book a free and confidential evaluation.
Professional Financial Review
When you meet with a credit counsellor, or one of our LITs (Licensed Insolvency Trustees) you will have your financial situation reviewed completely by a professional debt management expert.
The counsellor or Trustee you meet with with all you understand your financial overview by reviewing your income, assets and expenses, as well as your current debt load to help you understand your situation.
After there is an accurate understanding of your financial picture, your debt relief expert will be able to explain the best options for you to get out of debt based on your current financial situation, your budget and your long term goals.
For people that would like to get out of debt as quickly as possible and for as little cost should consider bankruptcy or a lump sum payment consumer proposal.
Your counsellor can also help you set up a budget and lay out your plan for getting your financial footing back on track.
Simply creating a realistic budget and learning how to stick to it can help solve some of your financial difficulties.
Proceeding With Credit Counselling
If you decide to proceed with credit counselling, your counsellor will work with your creditors to attempt to negotiate a new payment agreement for you on your debt. Sometimes, your credit counsellor can get your interest reduced, or even waived.
One of the benefits of credit counselling is that your counsellor will deal with your creditors, and you will only have to make one payment to your credit counsellor, who in turn will disburse your funds to your different unsecured creditors.
Your counsellor will often also give you many tools and resources you need to learn how to manage your funds in a proper manner and to budget.
Some counsellors provide access to webinars and seminars that help you with credit education, budgeting and how to use credit wisely so you can stay debt free in the future.
A non-profit credit counsellor is paid a salary, but they cannot receive a commission for signing you up for any debt mangement program.
What are the Benefits of Non-Profit Counselling?
The main benefit of non-profit credit counselling, is that it is just that – non-profit. These counsellors are not trying to make a profit from providing debt assistance to individuals struggling with a debt problem.
Your debt relief services will be free or low cost when using a non-profit credit counsellor. The cheapest and quickest way out of debt is often to go bankrupt; by using a non-profit credit counsellor you will still be repaying all of the debt you owe, while if you use a LIT to go bankrupt, you can get a fresh start, completely debt free.
Avoiding bankruptcy is often a prime concern for many Canadians in debt, so non-profit credit counselling can be the right solution for certain individuals. Unlike a non-profit credit counsellor, a Licensed Insolvency Trustee can provide a full range of debt relief solutions, including credit counselling.
A LIT can serve as a credit counsellor
Most credit counselling agencies receive a donation from the credit industry, which means the credit grantors are funding non-profit credit counsellors. Essentially, this means that while the credit counsellor is not making a profit by speaking with you, there could be a potential conflict of interest since the credit counsellor is being subsidized by credit grantors, who don’t always have the best interests of the consumer – you, the person with debt – at heart.
Before you sign any agreements with a credit counsellor or a credit counselling agency, make sure that you understand the agreement that you are signing.
If you decide that working with a non-profit credit counsellor is the right choice for you, make sure that you take the time to choose the right non-profit credit counselling agency, that is reputable and has a good standing.
Choosing a Reputable Non-Profit Credit Counselling Agency
Before you make an appointment to meet with a credit counsellor, make sure that you research a few different organizations to ensure that they have qualified counsellors who are reputable and have a long standing reputation for helping people from all walks of life with debt problems.
To begin your research, you can check that the credit counselling organization is a part of the BBB, with good reviews. You should also check that they are registered with the consumer protection area in your province. A last check to perform is that the organization is a Credit Counselling Canada member.
All members of Credit Counselling Canada are registered Canadian charities.
You can also speak with a Licensed Insolvency Trustee, who can provide a full range of debt relief options, and can assistance you with eliminating all, or most, of your debts through bankruptcy or a consumer proposal.
Meeting With a Non-Profit Credit Counsellor
After you have decided on a few good credit counselling organizations you would like to contact, make sure that they offer the right services that you require, as not all credit counsellors provide all the different services a credit counsellor can provide. You can schedule a meeting with as many organizations as you like, although you should limit it to a small number of the ones that you’ve researched.
We suggest you be prepared to ask the counsellor different questions during your free consultation such as:
- Are there any fees?;
- Is there a set-up fee?;
- Can I change or cancel my debt management program with a credit counsellor if my financial picture changes?;
- Can the fees be reduced if I am on low income?;
- Are you fully licensed?;
- What are your qualifications?;
- Do you provide a written contract of the services provided?;
- Does the written contract clearly lay out my responsibilities and payment schedule?;
- What resources do you provide to help me learn about credit management and staying out of debt
You should confirm your responsibilities, obligations, and have a full understanding of the debt relief program before you sign any agreement with any credit counsellor. It’s in your best interests to speak with more than one counsellor and you should have a full and clear understanding of how a credit counsellor can assist you and what your responsibilities are before you sign any agreement with a debt counsellor.
Is Credit Counselling Right For Me?
Working with a non-profit credit counsellor has some benefits for certain individuals. Mostly, a non-profit credit counsellor can help with people who have a minor or temporary financial challenge with debt. For people with a more serious debt problem, a Licensed Insolvency Trustee is often the best choice, as they can provide a full range of solutions, including credit counselling.
If you don’t have a serious debt problem, you can still speak with a non-profit debt counsellor who can help you work out a budget and give you tips for saving money and managing credit wisely.
There are no-cost services available for people that would like to learn to manage their finances and credit in a wise manner, regardless of your age, income or financial situation.
As with any skill, it takes practice to get better at financial literacy.
In almost every school across Canada, financial literacy and money management is not taught in school, and a non profit credit counsellor or LIT (Licensed Insolvency Trustee) can help fill in your knowledge gap.
Whether you work with a non-profit credit counsellor or LIT, you will learn many new money management tips and how to use credit wisely and stay out of debt. It’s never too late for you to learn ways to manage your finances in a responsible manner, and it’s never to early to learn about managing your finances before you get into debt.
Paying off debt can become a challenge for many Canadians, although there is luckily help available for many different debt problems.
Contacting a Licensed Insolvency Trustee
If you are ready to learn about developing a budget, getting a debt repayment plan, and receive the tools, knowledge and resources you can contact a non-profit credit counselling organization, or you can contact one of our Licensed Insolvency Trustees, who can provide credit counselling, as well as a full range of debt relief solutions, including going bankrupt or filing a consumer proposal.
Only bankruptcy or a consumer proposal can wipe out most, or all in many cases, of your debts.
Feel free to book a consultation with one of our LITs because the meeting is confidential, free and carries no obligation to work with the Trustee. The only thing you have to lose is your debt!
No matter what debt problem you are facing, the causes of your debt, your income or your family size, a Licensed Insolvency Trustee or a non-profit credit counselling agency can provide useful and helpful assistance.