Get The Help You Need to Get Out of Debt With Penticton Credit Counselling
If you are in debt in Penticton, credit counselling may be the best way for you to get your life back on track, repay what you owe, and begin saving toward future goals.
If you’re stressed out because of credit card debt, auto loans, personal loans, and other types of consumer debt, Penticton credit counselling may be what you need to get peace of mind, and work toward a better financial future.
Learn more below, or contact Bankruptcy Canada’s local Penticton team now for more information.
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Bankruptcy Is Not Your Only Option For Relief From Debt
When Canadians are stuck in debt, they often think that bankruptcy may be the only option to get relief from their debts.
Between January 2019 and January 2020, the rate of bankruptcies in Canada rose by 9.6%.
While bankruptcy is a useful tool for people who are in serious debt and have no way to repay what they owe, declaring bankruptcy is usually not necessary.
It also typically does not include “secured debts” like auto loans and mortgages, so it may not be very helpful if you have a wide variety of debt.
The best alternative is often credit counselling.
If you have a lot of debt and are struggling to repay, but you do not want to declare bankruptcy, this method of debt relief in Penticton may be right for you.
What Is Credit Counselling? Understanding The Basics
So, what is credit counselling?
Basically, it’s an alternative to bankruptcy that allows you to repay all of your debts without going through the public process of declaring insolvency and bankruptcy in court.
You will repay all of your debts, but nobody will ever have to know about it.
In addition, you will avoid the black marks that bankruptcy can put on your financial record.
Going bankrupt may seem like a good short-term solution, but it can make it difficult to get loans, credit cards, or even buy and rent a house in the future.
Rather than being a short-term option that is intended to clear your debts immediately, credit counselling is a multifaceted process that’s concerned with both clearing your debts and developing the skills that will allow you to manage your finances more efficiently – and avoid going back into debt in the future.
This is absolutely essential.
If you do not build healthy financial habits, it’s easy to fall back into the trap of debt.
That’s why 1 in 5 Canadians applying for bankruptcy have declared bankruptcy at least once before.
If you are in debt and declare bankruptcy but do not build better financial habits, you’re only treating the symptoms of the issue, and you won’t “cure” the problem that led you into debt in the first place.
And the best way to “cure” your financial habits is with Penticton credit counselling.
What Does Credit Counselling Usually Involve? Understanding The Basics
You may be wondering how credit counselling works, and what to expect if you decide to sign up for credit counselling in Penticton.
Typically, there are a few basic steps you’ll go through when working with a licensed credit counsellor.
These may include:
- Comprehensive financial assessment – To begin with, you and your credit counsellor will take a look at your finances, and get an overview of your financial situation, including your income, savings, owed debts, property, and more. This establishes a baseline from which a credit counselling plan can be created.
- Creating a budget – Budgeting is essential for your financial well-being. Many Canadians end up in debt because they simply do not understand how much money they have to spend, or they’re not aware of the high costs of using credit cards. Nearly 47% of Canadians “struggle” to cover their monthly bills and obligations. But with a smart monthly budget, you can ensure that you have enough money to cover all of your costs.
- Debt consolidation loans – A debt consolidation loan from a bank lets you pay off all of your credit card debt and other debt right away, consolidating your debts into a single monthly payment. This monthly payment is usually much lower than the amount you would pay for each debt individually. It may also be possible to take out a line of equity on your home or property to repay your consumer debts.
- Consumer proposal – A consumer proposal is an alternative to bankruptcy. It involves using the services of a Licensed Insolvency Trustee (LIT) to come to a formal agreement with your creditors to repay your debts, over a maximum of 5 years. You may be able to reduce the total amount you owe when you negotiate a consumer proposal with your creditors.
- Insolvency & bankruptcy – Bankruptcy should always be a last resort, but it can be a viable option for some Canadians who are in deep debt and may have trouble eliminating their debts through other means like debt consolidation loans or consumer proposals. A Penticton credit counsellor can help you decide if this is the right choice for you, based on your financial information.
Throughout these steps, your credit counsellor will help you learn more about the basics of budgeting, managing your money, and avoiding the trap of debt.
With the help of Penticton credit counselling, you can take the first step toward a life of financial freedom, and break the cycle of debt.
Get Help For Debt In Penticton With Our Credit Counselling Services
Our team of financial experts can help you break the habits that lead to consumer debt.
With the help of a certified credit counsellor in Penticton, you won’t just be able to get out of debt – you’ll be able to avoid the trap of debt for the rest of your life, and begin working toward a brighter financial future for you and your family.
Get in touch now to learn more about our credit counselling services, and to get the help you need.