A credit counsellor is someone who can help you better manage your finances and get out of debt. When you decide to go for credit counselling, a certified counsellor will review your entire financial situation and speak to you about your options.
A not-for-profit credit counselling agency will always have your best interest at heart and will try to help you avoid bankruptcy wherever possible. Unlike for-profit organizations, they will present you with all of your available options and help you determine the best route forward.
If a Debt Management Plan is applicable to your situation, a credit counsellor will provide you with detailed information about it can solve your debt problems as well as additional advice about budgeting, planning, making payments and anything else that will help alleviate your situation and prevent it from happening again in the future.
Here are 10 good reasons to see a credit counsellor. If any of these resonate with you, contact us for a free consultation today.
- You don’t know how to budget. A credit counsellor will show you how to make a budget and stick to it. Budgeting doesn’t mean having less – it means doing more with what you have. Your situation may not be as bad as you think. You might simply need to trim a few areas of your spending in order to afford the things you really want or need. Everyone has different priorities. A credit counsellor can help you determine yours so you can achieve your financial goals.
- You live paycheque to paycheque. Every month you’re struggling to make ends meet. Perhaps you even make good money and don’t understand why it seems so difficult. A lot of times, people just don’t know where their money is going. A credit counsellor can show you exactly where you’re spending your hard-earned dollars. You may not realize that the large Mocha Latte you buy every day is actually costing you $75/month, or that eating lunch out three times a week is adding up to $120/month.
- You’re getting calls from collections agencies. Have you ever had that sick feeling in your stomach when you hear the phone ring? Daily life is stressful enough without the added pressure of creditors calling and demanding payments. A lot of times, your situation isn’t a result of something you’ve done, but it could be a circumstance that was out of your control such as a job loss, reduced income, divorce, sickness or death of a loved one. A credit counsellor recognizes this and can help you work through it.
- You have a bad credit rating. Your credit report is a snapshot of your credit history and one of the main tools that lenders use to decide whether to give you credit. If you don’t pay your bills on time or skip monthly payments, you’ll get a bad credit score, which may lead to you being turned down for a loan or a lower interest rate. A credit counsellor can help you get a copy of your credit report, understand your rating and the effect it is having on your credit, and also offer tips on how to improve your credit score.
- You’re considering bankruptcy. There are times when you may feel that your situation is hopeless, but bankruptcy is not always your best option. While it might seem like the easiest way out when you are experiencing financial difficulty, it can have long term negative effects. Credit counselling is ALWAYS the best first step. A credit counsellor will review your situation and advise you as to what is in your best interest. They’ll do everything they can to prevent you from declaring bankruptcy unless they strongly believe it is the best option for you. Non-profit credit counsellors will always have your best interest at heart and are qualified to determine the right path for you.
- You want to get out of debt. Unfortunately, there is no magic wand that will make all of your debt disappear. However, a Debt Management Program may be just what you need. A credit counsellor can help you achieve the financial freedom you deserve by working with you and your creditors to develop a debt management program that will reduce your monthly payments and possibly interest charges and other fees. Studies have shown that the consumers who successfully complete a debt management program become much more responsible debtors than those who have no financial intervention or file for bankruptcy.
- You need ongoing support with your finances. A good credit counselling agency will provide you with support from the moment you walk through the door, through the duration of your debt management program and beyond. It shouldn’t be about signing you into a contract, taking your monthly payment and never returning your phone calls. Local not-for-profit agencies are more about helping people than helping themselves. A Debt Management Program is a voluntary arrangement. You’re in control of your financial situation and decide how you want to deal with it.
- You genuinely want to improve your financial literacy. Credit counsellors don’t just want your debt to go away, they want it to stay away! The best way to stay out of debt is through education and improving your financial literacy. A credit counsellor will provide you with the tools, resources and knowledge needed to stay debt-free, improve your credit rating, rebuild your credit and enjoy a life of financial freedom.
- You want a better life. Just imagine not having the stress that comes with financial worries. When you have too much debt, you can’t get the things you really want or provide for your family the way you want to. By eliminating or reducing your debt, you’ll have more savings, less stress and anxiety and an overall better financial health.
- You want trusted local support. A local non-profit credit counselling agency, such as Credit Counselling Services of Atlantic Canada, has been serving consumers across Atlantic Canada for more than 25 years. Their certified credit counsellors always have your best interest in mind. Always do your research when contacting a credit counselling agency to ensure that they are not only certified, but are also accredited and licensed to work in your province. It’s also a good idea to check with the Better Business bureau (BBB) to see if the agency has any complaints filed against them.
Are you ready to reach out to a credit counsellor for financial help? Get started today! Contact us for a FREE consultation.