5 Things You Didn’t Know About Debt Counselling

If you have reached a point where you feel that filing for bankruptcy is your only option, then don’t despair. Household debt in Canada is an increasingly common situation; in fact, Canadian citizens owe over $2.15 trillion in debt alone! Bankruptcy proposals have skyrocketed, so you’re not alone.

5 things you didn’t know about debt counselling

If you’re weighed down by legal threats, collection calls, and wage garnishments, you’re probably looking for a way to consolidate your problems and find a way out. What we find is that most people aren’t aware of the options available to them in terms of debt relief, and almost always just end up filing for bankruptcy. However, bankruptcy takes fees, and leaves a permanent, public record. Educate yourself on the other options available to you, as they might make more sense to your personal situation.

That’s where credit counsellors come in. Debt counselling is an easy solution to explore the debt relief options available. Counsellors will not only guide you through various programs and resources, but they will also provide customized support such as budgets and financial assessments, which will help you alleviate your situation. The program gives you the tools you need to pay off your outstanding debt and help for long-term plans for financial success.

1.   Debt counsellors are highly trained professionals

Registered Credit Counsellors are trained professionals who are registered with the Office of the Superintendents of Bankruptcy (OSB). They are required to complete training as well as minimum hours, and are certified to provide you with financial solutions. Credit counselling professionals offer their expertise to improve financial situations and help people get out of debt. They do this through money management ideas and strategies for financial wealth.

2.    Debt counselling offers professional budgeting help

Credit Counsellors are with you every step of the way. They go through your financial records, assets, spending habits, and debt, and come up with a financial assessment. This assessment is the blueprint to help you out of your insolvency problems. A critical step here is to create a personal budget, which helps you resolve all your obligations. Counsellors can help you create a custom, tailored budget that is unique to you and your financial situation. This is a realistic budget that will help you manage your current expenses, and better deal with upcoming expenses in a responsible manner. This is extremely helpful for financial success, and your counsellor provide a non-judgemental assessment of your situation.

3. Debt counselling provides debt management options

Accredited Credit Counselors are there to help you deal with your finances. After a thorough financial assessment, they will provide a proper plan that will allow you to deal with debts easily. Accredited professionals are trained in the various debt allegiance programs and will suggest a structured debt management program. After years of experience, we have found that when customers are given careful advice on their options, their debt relief is successful and long lasting. Not only will they provide alternatives to filing for bankruptcy, credit counsellors may also be able to refer you to other businesses in your area if you require additional services they are unable to provide.

4. Debt counselling goes into the specifics

If you enter into financial assessment, the options will be laid out for an in-depth understanding of the process. Credit counsellors can also discuss proposals where they negotiate with your creditors to make a manageable repayment plan. They will help you arrive at a repayment plan, and structure it so that it is disbursed to your creditors on a monthly basis. Debt counselling helps break down the steps to your financial solvency and really goes into the specifics of how to help you achieve independence. It is this specific information that sets apart an expert debt counsellor from a mediocre one.

5. Debt counselling disadvantages

Remember that credit counselling itself does not reduce the total amount of the debt principal you owe. Counselling simply provides alternatives and possible solutions, where in reality bankruptcy is your quickest solution to debt settlement. However finding the right option for you can in itself can be a key step to financial success.

There you have it: 5 things you didn’t know about credit counselling. This is a very helpful resource if you’re trying to resolve debt while avoiding bankruptcy, or even if you just don’t know all the options available to you! Every situation is unique, and doing the due diligence in researching the different options will help you in the future. Debt counselling also helps with money management for long-term success, which is key in financial solvency and independence.

Reach out to our team of professionals for any of your money doubts or queries. To book an appointment, call Kevin Thatcher & Associates today at 1-866-719-8547 or contact us here.

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