Debt settlement is a service offered by for-profit companies whereby they negotiate with your creditors to try and reduce your debt to one lump sum payment, typically lower than what you owe. If they negotiate successfully, you must provide the lump sum to your debt settlement company, who will then pay your creditors on your behalf.
While this may seem pretty straightforward, the Financial Consumer Agency of Canada (FCAC) is warning Canadians that some debt settlement companies are misleading consumers. Always ensure that your full financial situation is considered as settlements are not appropriate for all situations.
At Credit Counselling Services of Atlantic Canada, our accredited financial counsellors can help you determine if a debt settlement is in your best interest based on their financial assessment. As a not-for-profit organization, we keep our clients’ best interest in mind, and always present ALL of your options to you.
If you are unsure if debt settlement is right for you, contact us and make an appointment with a counsellor today.