According to a recent report from Equifax, average debt levels in Newfoundland and Labrador have been rising steadily over the past few years. This can lead to unmanageable household and consumer debt amongst its residents, particularly in St. John’s, its most populated city. If you’re currently dealing with this type of financial problems, it’s better to act sooner rather than later.
In that case, going to credit counselling is a great first step toward reversing any bad financial situation.
How Can Credit Counselling Help My Financial Problems?
Credit and debt counselling can be found throughout St. John’s and Canada. Their main goal is to help people with their money problems and, if necessary, participate in the administration of solutions that allow borrowers in St. John’s to settle or pay back their debts through various programs.
When you sign up for credit counselling in St. John’s, you can expect:
- The chance to work with a certified credit counsellor – These qualified experts in St. John’s can give you all the information you need. Usually, you will be able to attend courses taught by these professionals or, if you wish, meet one-on-one with them to discuss your financial problems in person.
- Lessons about debt and money management – If you’re currently experiencing financial hardship in St. John’s or want to avoid it in the future, a credit counsellor can teach you budgeting techniques and how to manage your money successfully.
- Negotiations with creditors and collection agencies – Being hounded by the collection efforts of the people you’re in debt too can be stressful and make things worse for your finances. However, a credit counsellor can reach out to them for you and negotiate ways for you to settle, even reduce your debts and ensure that everyone involved is being treated fairly.
- Administration of debt settlement solutions – There are a number of products and programs in St. John’s that allow you to settle or reduce your debt load. Some of them can be confusing and not easy to handle on your own. A credit counsellor can teach you about and, if needed, organize those solutions for you. Common programs they can help with include:
- Debt settlement
- Debt consolidation
- Consumer proposal
- Bankruptcy
Will Credit Counselling Erase My Financial Problems?
While we’re on the subject of what to expect from credit counselling, it’s crucial to understand that this service cannot make your financial problems disappear. Credit counsellors are there to have in-depth discussions with you, during which they can teach you better financial habits and/or help you seek out the best debt solution for your specific case. They don’t have a magic wand that makes your problems vanish.
In other words, it’s best to set your expectations appropriately and know that you’ll have to put in most of the hard work before your financial situation can improve in St. John’s.
Is it Possible to Find Bad Credit Counselling in St. John’s?
Another thing to consider before you settle on a counselling agency or counsellor in St. John’s is how to choose one that’s appropriate for your needs. Different counselling sources come with different factors that can make them good or bad for your financial situation. Unfortunately, it is possible that you’ll come across sources in St. John’s that aren’t legitimate. There are some that really will try to help you and others that don’t have your needs in mind at all.
Consider the following factors beforehand:
- Confirm their legitimacy and success rate – Any legitimate credit counsellor or counselling agency should be certified in their field and possess a valid license to operate in Newfoundland and Labrador.
- Advanced research is key – Be sure to perform your own background check on whichever counsellor or agency you’re thinking of signing up with. If they don’t have a legitimate reputation, a page with the Better Business Bureau, or their reviews are riddled with complaints, walk in the other direction.
- There may be costs involved – Even with legitimate sources, some counselling sources are nonprofit and others charge a flat fee for their services, especially if your counsellor needs to administer some kind of debt settlement program.
- Scamming is possible – Having financial problems can cloud your judgement and scam artists know it. Although some lawful counselling services are for-cost, others aren’t legitimate and will use your desperation to charge you a ridiculous amount. Even worse, they may be a fake organization out to steal your financial or personal information. Remember, prior research is essential.
Are you a victim of identity theft? Here’s how you can tell.
Can My Credit Be Affected By Credit Counselling?
In a sense, yes. One of the best things about credit counselling itself is that none of the courses you take, nor the advice you get from a counsellor will have an impact on your credit, as other debt management programs do. That said, remember that their services often include the administration of such programs.
Make sure you don’t fall for these debt consolidation myths.
For instance, filing for bankruptcy in St. John’s typically involves a legally binding process conducted by a licensed insolvency trustee (click here to learn more about LITs). However, a credit counsellor can teach you about the bankruptcy process and, if necessary, put you in contact with a respected trustee in St. John’s. Afterward, your bankruptcy will have a significant impact on your credit report, because a record of it will remain there for 7 years following discharge. In addition, your credit score will lower drastically and your credit rating will drop to an R9. All this can lead to rejected applications for new credit or extremely high-interest rates for approved ones. Always keep these kinds of factors in mind before you choose credit counselling.
Interested in more credit score information? Click here.
When Should I Seek Credit Counselling in St. John’s?
Essentially, knowing when to seek credit counselling is all about timing. Even financial situations that seem irreversible can be made easier with help from a professional. Although you won’t be turned away if you’re simply looking for financial knowledge, it’s best to start looking for agencies and counsellors when:
- Your income, savings, and credit products cannot alleviate the number of debt problems and financial stress you’re experiencing.
- You’re having trouble formulating a proper budget and keeping track of all your expenses and payment dates.
- Unpaid bills, interest, and late penalties are piling up, and your debts are being sold to collection agencies.
- You can’t qualify or don’t want to apply for a debt consolidation loan. While a credit counsellor can refer you to sources of these loans, they are products that can cause you further debt, so it may be better to avoid them if that’s the issue.
- A consumer proposal or bankruptcy are becoming real risks for you.
- You need help recovering from the negative effect of a consumer proposal, bankruptcy, or other serious debt settlement option.
Read this article to discover more ways you can conquer your high-interest debt.
Loans Canada Has The Help You Need
Are you currently struggling with your credit or debt problems? Are you interested in seeking the help of a professional in St. John’s to get back on track? Loans Canada can help match you with the right service provider to meet your financial needs.
