As a consumer in Halifax, it can be relatively easy to find yourself in debt. While some debt is fine, too much debt can cause financial chaos in your life. Overspending is a common phenomenon among consumers in Halifax – and the entire country – especially since credit cards make it so easy.
Here’s how to start saving when you have too much debt.
Are you currently drowning in credit card debt? Do you have too many loans that make keeping up with each payment very difficult? If so, you might need a little assistance to help you get out of this financial pickle in the form of credit counselling.
So, what exactly is credit counselling, and how can it help you better manage your debt?
What is Credit Counselling?
Essentially, credit counselling in Halifax involves educating consumers on proper debt management. It’s meant to help consumers who have a lot of debt, but are not in such a dire situation that bankruptcy is near. As long as your debt is somewhat manageable, credit counselling may be a viable option for you in Halifax.
More specifically, credit counselling services in Halifax are designed to help consumers come up with a workable budget that allows their current finances to adequately handle debt obligations. It may also include the option to consolidate debt, which involves taking out a loan at a lower interest rate to pay down all other outstanding debt. This can help to save money thanks to a lower interest rate and make managing debt much easier.
What is a Credit Counsellor in Halifax?
A credit counsellor is a professional in Halifax who is educated and trained to offer sound financial advice to consumers who may be struggling with their current debt load. These experts in Halifax can provide guidance and advice on what can and should be done to better manage debt in order to help effectively reduce the debt load over time.
Looking for some debt management tips? If so, be sure to read this.
Is Credit Counselling Right For You?
There are several situations that might warrant credit counselling in Halifax, including the following:
- You need help dealing with rising debt loads
- You want to consolidate your debt
- You want to stop all those collections calls
- You need helping coming up with a workable and realistic budget
- You need some guidance to better manage your money
- You’re thinking of completing a consumer proposal
- You need help from a debt relief program
How Do You Choose the Right Credit Counsellor For You?
There are plenty of credit counselling services in Halifax, and with each comes a slew of credit counsellors. If you’ve decided to reach out for help with your debt, you may be wondering how to go about deciding which credit counsellor in Halifax is right for your situation. Certainly, some credit counsellors are better suited than others.
To pick the right credit counsellor, consider one who hails from a non-profit agency that is both licensed and certified in Halifax. These are important details to consider because you want to make sure that the credit counsellor you choose is competent enough to provide you with the debt relief services you need.
You may even want to go so far as to look into whether or not there have been any complaints made against the credit counsellor or the agency they work for in Halifax. Several complaints could be a red flag.
Look here for more information about credit counselling agencies.
What to Expect From Credit Counselling in Halifax
When you work with a credit counsellor in Halifax, all of your financial information will be taken into consideration. Your income, assets, and all the bills that you’re responsible for paying every month will be looked into and any of your concerns about your debt will be addressed.
Once all information has been gathered and looked over by the credit counsellor, a budget and strategy will be established that will help you better deal with your debt so you’re not bombarded by financial obligations all the time. They’ll provide you with steps to take to alleviate your financial woes.
It should be noted that although having a credit counsellor by your side may help, it’s not a solution that will make your debt disappear. Instead, it will take some amount of work and sacrifice on your end to make things work. While the credit counsellor can be a valuable asset, you will have to meet them in the middle with your own dedication to resolving your debt issues.
Will Credit Counselling Affect Your Credit Score?
Having a decent credit score is important to your overall financial health. This number plays a crucial role in your ability to secure loans and credit in Halifax or anywhere else in Canada. As such, you’ll want to do what you can to make sure your credit score stays as healthy as possible.
Considering how important your credit score is, it’s understandable to worry about whether or not credit counselling may negatively affect it. The good news is, tapping into credit counselling shouldn’t pull your credit score down.
Look at this to see some surprising perks of having a good credit score.
Having said that, what you do after working with a credit counsellor could have a negative impact on your credit score. For example, taking out a debt consolidation loan might have an effect. That’s because your lender in Halifax will pull your credit report before agreeing to extend this loan, which is then marked on your report as a “hard inquiry.”
In addition, how your creditors report a debt that is involved in a debt consolidation program can also affect your score. If they report your debt as settled, as opposed to repaid, your credit score could dip.
Check out this infographic to learn even more about credit scores.
When Should You Consider Credit Counselling in Halifax?
Not every consumer in Halifax is well suited for credit counselling. Certain situations warrant credit counselling more than others, including the following:
- You have plenty of financial problems
- Your debt load is too much for you to handle
- You’re considering filing a consumer proposal
Get Professional Help From a Credit Counsellor Before it’s Too Late
If your debt is becoming a real issue for you, consider reaching out for help before the problem gets any worse. While many options are available to you to help you deal with your debt, credit counselling is often a great place to start before more drastic steps may need to be taken.
By enlisting the help of a credit counsellor, you can pinpoint the problems and come up with a strategy to fix them. In turn, you’ll be capable of dealing with your debt and avoid serious ramifications.
To learn some more ways of conquering your high-interest debt this year, read this article.
Get The Financial Help You Need in Halifax
If you’re currently struggling with consumer debt that you just can’t pay off, Loans Canada has a wide variety of debt and credit products in Halifax that can help you tackle your debt and get back on track toward a healthier financial future.
