How Does Credit Counselling in Ontario Work?
Do you live in Ontario and suffer from financial problems?
According to recent statistics, Ontario has the second-highest combined debt per person ($45,891) out of the entire country.
Many residents are falling into debt spirals that they struggle to get out of.
The good news is that you have plenty of options to help you gain relief from your debts.
Need Help Reviewing Your Financial Situation?
Contact a Licensed Trustee for a Free Debt Relief Evaluation
Alongside this, we also provide credit counselling in Ontario.
This is a highly sought after service as it provides support and guidance for people in financial distress.
If you’re interested in Ontario credit counselling, then allow us to explain the service in more detail.
It will help you see what you’re getting in to and how it can benefit your situation.
What is Credit Counselling?
Credit counselling is an opportunity for you to work towards a debt-free life.
It’s a process that involves sitting down with a Licensed Insolvency Trustee and going through your situation.
You will work out an effective solution to repay your debts to any creditors that are snapping at your heels.
Furthermore, credit counselling also empowers you with advice and knowledge to avoid getting into debt again.
This is one of the key factors of our Ontario credit counselling services.
We provide financial education to help you learn how to manage money more effectively.
This includes budgeting advice, tips on how to use credit, and other assistance on various financial matters.
Credit counselling isn’t just about finding solutions to get rid of your current debt, it’s about preventing the same situation from happening again.
What are the benefits of Credit Counselling?
The overall benefit is that you find a way of paying your debts.
In turn, this stops creditors from harassing you or taking legal action to seize any assets.
They get their money, but you pay it off in a way that’s easy for you to handle.
As a consequence, credit counselling in Ontario can also prevent you from filing bankruptcy.
There are other advantages of this debt relief service:
- Work with creditors to lower your interest rates – this is key to making debt manageable for most individuals. You’ll find that many people can afford the monthly debt payments on their own, it’s just the added interest that makes things challenging.
- Negotiate a better payment plan – you can work with creditors to agree on a different payment plan that eases the tension on your finances. They still get the money you owe, but it might be spread out over a longer period.
- Consolidate your debts – sometimes, credit counselling helps you repay debts by consolidating multiple debts into one. As such, this is far easier to manage as you no longer have various creditors coming after you.
How does Credit Counselling differ from Debt Settlement Programs?
Debt settlement programs are another solution to your financial problems.
Those of you with experience of them may wonder how credit counselling differs.
Both ideas serve to make it easier and more manageable for you to pay your creditors.
Both also focus on avoiding more extreme debt relief measures, such as bankruptcy.
The difference comes in how each method approaches your debt.
Credit counselling in Ontario will not reduce your total debt levels.
It can lower interest rates, but the principal amount owed to creditors will remain the same.
Debt settlement programs will actively seek to reduce the total amount owed.
This is primarily used in situations where you have a lot of debt.
Some people have too much debt to pay off, so a debt settlement program reduces it to a level they can afford.
Much depends on your creditor’s willingness to agree on a reduced overall payment.
Is Ontario Credit Counselling right for me?
Generally speaking, credit counselling is an excellent solution if you are in debt with few creditors to pay.
It works best in the early stages of debt as it can prevent things from getting out of hand.
If you owe vast sums of money to multiple creditors, then you may need a more extreme solution.
Still, credit counselling is a fine option for most people.
We encourage anyone in debt to seek credit counselling if you feel like things are starting to get out of hand.
Perhaps you’ve missed a couple of payments of your finances feel very tight.
Counselling helps you come to a solution before you fall into a debt spiral.
With that in mind, if you need credit counselling in Ontario, then feel free to contact us today.
Fill in an online evaluation form or give us a call, and we can discuss things in more detail.