The Problem with Debt Consultants

Dealing With Debt Consultants

When you’re in debt, it’s an astonishing but all-too-true fact that some people out there will try and profit from your misfortune.

Call it human nature, or call it absolute dishonesty.

Whatever name you give it, there are individuals and organizations out there that will provide you with bad advice, charge you fees, and even put you in a worse situation – all in the pursuit of cash.

The problem with debt consultants is that they’re rarely qualified, and hardly ever have your best interests at heart when they tell you things.

Anyone that’s out to make a fast buck from people in debt should be avoided at all times.

Need Help Reviewing Your Financial Situation?
Contact a Licensed Trustee for a Free Debt Relief Evaluation

Call 877-879-4770


When something sounds too good to be true – it’s generally a debt consultant company

When it comes to getting advice about your debt, the best policy is to stick to non-profit sources – and don’t believe absolutely everything you read on the internet either.

The fact is, there are two types of people who’ll look to make contact with you when you find yourself with unmanageable debt.

For-profit people tend to be the ones you need to ignore.

We’ve all seen and heard the promotional material these guys put out on the radio, on the TV and in print.

There are two general rules of thumb when you see or hear these advertisements.

The first is that any time anything mentions a ‘government-approved’ scheme – run a mile.

The Canadian government doesn’t approve any of the programs these organizations offer – and in fact, the government in Canada doesn’t even have a vehicle for that sort of endorsement.

The second rule is to ignore anything that tells you to “Act now!”

It’s a ruse designed to suck you in and trick you into agreeing on fees.

Yeah, it’s a good idea to address your debts sooner rather than later, but stick to non-profit help when you do.

The Difference between Non-Profit and For-Profit help when you’re in debt

What it boils down to is how people get paid, and whether or not they’re registered and qualified to hand out advice and assistance regarding debt.

In the case of for-profit debt consultants, they’re neither qualified nor registered.

In Canada, we get a lot of US-registered companies that get around the rules by never holding your money – they just charge fees remotely.

Most so-called schemes involve them calling up creditors for you (something you can do yourself for free) and trying to reduce your debt with a payment plan.

Creditors don’t like this.

You’re unlikely ever to achieve any of the wild debt reduction claims these companies make either.

If you do sign up, debt consultants based in the States just get you to pay the money directly to the creditor anyway – because legally, the consultant isn’t allowed to handle your cash.

It’s all a scam, and these companies do nothing at all you can’t achieve yourself.

Licensed Insolvency Trustees and Reducing Your Debt

Only a licensed insolvency trustee can legally file for a consumer proposal on your behalf in Canada.

They’re a fully-qualified source of unbiased advice, and they don’t profit from your misfortune either.

There’s a trustee near you, and your initial consultation will likely be free.

Debt consultants aren’t required to be trained or registered in Canada – so avoid them.

They use questionable contracts, do very little or nothing at all, and they’re usually not even based in this country.

If you need advice about any aspect of your debt situation, or if you’d like to find your nearest licensed insolvency trustee, we can help

At BankruptcyCanada, we’ve been busy helping people just like you for decades.

Our staff are highly trained, and we can put you in touch with a network of licensed financial professionals too.

Don’t wait before you tackle your problems with debt, but don’t throw your money away on unqualified consultants, either.

Call us today on (877) 879-4770 (24/7) for a no-obligation chat about your options.

Please post a follow up comment below:

(Note: Comments are reviewed before posting.)