Overcoming The Trap Of Debt With Credit Counseling in Kitchener, ON
If you’re in debt in Kitchener, it may feel like it’s impossible to make any progress toward repaying what you owe without credit counselling services in Kitchener.
Maybe you’re having trouble even paying your bills on time while covering your other monthly expenses.
It’s very difficult to get out of debt in Canada for a number of reasons.
And Canadians continue to take out record amounts of debt.
The average household pays nearly 15% of its monthly income toward consumer debt like credit cards.
So what can you do if you’re struggling?
Need Help Reviewing Your Financial Situation?
Contact a Licensed Trustee for a Free Debt Relief Evaluation
Credit counselling in Kitchener may be just what you need.
Find out if you’re a good candidate for credit counselling below, and take the first steps toward living a debt-free life.
The Top 5 Signs That You Need Credit Counseling In Kitchener
If you’re struggling with debt in Kitchener, credit counselling is right for you.
What are the most common signs that you should turn to a professional?
Let’s take a look now.
- You’re living paycheque-to-paycheque – If you struggle to cover your costs between paydays, or each of your paycheques immediately must be spent to pay down debt that you’ve incurred, you definitely need the help of a credit counsellor in Kitchener to improve your financial well-being.
- You’re late or overdue on multiple debts – Can’t make payments on time? You may end up paying high late fees or be penalized with a higher interest rate, which will make it even harder to repay what you owe.
- Your bills have gone to collections – If one or more of your debts has entered collections and you’re dealing with collections agencies, you may need the help of a credit counsellor to work out a repayment plan and get your finances back on track.
- You’ve taken out a cash advance – Cash advances, also known as “payday loans” are often used to cover costs between paycheques, but have extremely high-interest rates. If you’re being forced to take out cash advances to cover your costs, you need help to get your finances back on track.
- You’re considering bankruptcy – If you’re thinking about declaring bankruptcy in Kitchener, you should consult with a licensed insolvency trustee right away. Bankruptcy can be a reasonable option for discharging your debts, but it should be used as a last resort if other methods of debt consolidation and repayment are not an option.
If any of these signs apply to you, it’s time to get help. Contact our friendly team to discuss your options with a licensed credit counsellor.
Why Is It So Hard To Get Out Of Debt On Your Own?
If you’ve tried to break your bad financial habits and get out of debt on your own, you know how difficult it can be to create meaningful changes.
There are a few reasons why getting out of debt is so difficult.
- It requires financial literacy – Many people are not equipped with the tools they need to get out of debt, such as knowledge about budgeting, how interest rates work, and other such basics about financial literacy.
- Getting out of debt requires sacrifice – To get out of debt permanently, you need to change your lifestyle and make sacrifices. You can’t keep spending the way you used to, and you will need to cut back on most or all frivolous purchases. This can be extremely difficult, especially if you have trouble forming new habits.
- Most of your payments go to interest – Even if you do budget effectively and make sacrifices to repay your debt more quickly, you’ll find that much of what you pay is often eaten up by high-interest payments and bank fees. This can be very discouraging and makes it difficult to stay motivated when repaying your debt.
- It can take a long time – Getting out of debt doesn’t take days, weeks, or even months. The process can take years. It’s hard to stay persistent and patient while you make sacrifices to pay off your debts.
For all of these reasons, most people who try to get out of debt on their own have a very difficult time – and many simply give up altogether.
How Does Credit Counseling Help?
Credit counselling is the best way to overcome the difficulties of getting out of debt.
Here are a few ways that hiring a licensed credit counsellor will help you.
- Learn more about money & finances – Your counsellor will help you learn more about the basics of personal finances and money management, and build good habits that will stick with you for the rest of your life.
- Build a budget – Personal budgeting is the best tool for getting out of debt, staying out of debt, and helping you reach your future financial goals. Your counsellor will work with you to teach you the basics of budgeting, and how to implement them in your life.
- Explore options for reducing debt – With the help of a counsellor, you may be able to take out a debt consolidation loan, get a line of credit on your home, or even work out a consumer proposal to reduce what you owe to your creditors.
- Create an actionable plan for repaying what you owe – Your credit counsellor will provide you with a detailed, step-by-step plan that you can use to keep yourself on track for the months and years to come as you repay your debt– which gives you a clear goal and keeps you motivated.
By working with a credit counsellor in Kitchener, you can get the personalized, expert services you need to overcome the cycle of debt and begin working toward a debt-free future.
Get In Touch Now To Get The Help That You Need In Kitchener
Ready to get started with Kitchener credit counselling services?
We’re always here to help.
Your struggle against debt doesn’t have to feel hopeless.
No matter your situation, contact us now for a consultation.
We’ll discuss your options for debt relief in Kitchener, and help you choose the right path forward.