How Can a Credit Counselling Agency Help Me?

How Can a Credit Counselling Agency Help Me?

Written by Caitlin Wood
Last Updated March 12, 2020

With the economy constantly in flux it’s becoming more and more common for the average Canadian to need some type of financial assistance. Living paycheque to paycheque and cautiously waiting for the dreaded call from a debt collector have become the norm. If you feel like you’re finances have steadily become too much for you to handle and you’re debt is piling up, you might want to consider seeking the professional help of a credit counselling agency. Managing your own finances on top of everything else you need to accomplish on a daily basis can be extremely difficult. This is why there are trained professionals willing to help you get back on track and regain control of your credit.

Is Credit Counselling The Best Option For Me?

This is a decision that you need to make for yourself. But if your debt has gotten out of control and you have no idea where to start, asking for help might be exactly what you need. The great news is that by admitting you have a debt problem you’re already one step closer to finding a solution and getting back on track.

Before you contact a credit counsellor you should make sure you know exactly what to expect. Being as prepared as possible will make the whole process a little bit easier to handle, ask yourself the follow questions to make sure you choose the best debt relief option for your situation:

  • How much will credit counselling cost and is it worth it?
  • How will credit counselling affect my credit?
  • How long will it take to become debt free?
  • Will credit counselling teach me how to manage by finances more responsibly?

Once you’ve answer all of these questions as honestly as you can you should have a better idea about how you want to tackle your debt.

How Does Credit Couselling Work?

Legitimate credit counselling agencies assist their customers in the management of money and debts. This is achieved through financial advice that will then provide a base for future financial decisions. Your credit counsellor will enable you to make independent plans that are within your financial capabilities by offering advice on budgeting, credit and debt. A credit counsellor will also help you to execute any plans that you make. For example, they can help by contacting your creditors to renegotiate your interest rates.

Another effective solution offered by credit counselling firms is the debt management program. In this program, a customer pays deposits to the credit counselling organisation, which it uses to finance an individual’s unsecured debts on their behalf. The agency will also provide a payment schedule that accommodates the input from the customer, his or her creditors as well as the financial adviser.

Advantages

Working with a credit counsellor will not only provide you with the peace of mind that you’re finally taking back control of your finances, they will:

  • Teach you how to create a realistic budget and then stick to it. A budget could potentially provide you with the stability you need to avoid other more damaging debt solutions like consumer proposals or bankruptcy.
  • Negotiate on your behalf with your creditors. Your counsellor will get in contact with all of your creditors and try to lower your interest rates as well as renegotiate your payment plans. These two changes will reduce a lot of the stress associated with your debt.
  • Prepare you for future financial issues. A credit counsellor can provide you with tips and tricks that will help you better handle all your future financial issues.

A credit counselling agency can empower you to make more practical and effective financial decisions, provide you with the budgeting skills you need and facilitate the establishment of long-term financial goals. Credit counselling agencies have the capacity to provide financial management programs that are unique to every customer’s financial practises. This enables the accommodation of any and all financial challenges that are experienced when using credit or borrowing money.

Get The Help You Need

In addition to all these dependable and effective solutions, credit counselling offers a source of financial information. Signing up with credit counselling agency opens a direct avenue to know how financial operations are undertaken such as the calculation of interest rates, financial practices that can attract debt collectors, how to file for bankruptcy and even lucrative investment options. This enables the customer to understand how finances are analysed and managed.

It’s important that you take the initiative and make the first step to protecting yourself from further debt as well as financial ruin. Seeking the help of a credit counsellor will allow you pay back your debts and take back control of your financial life.

Caitlin is a graduate of Dawson College and Concordia University and has been working in the personal finance industry for over eight years. She believes that education and knowledge are the two most important factors in the creation of healthy financial habits. She also believes that openly discussing money and credit, and the responsibilities that come with them can lead to better decisions and a greater sense of financial security. One of the main ways she’s built good financial habits is by budgeting and tracking her spending through the YNAB budgeting app. She also automates her savings so she never forgets to put aside a portion of her income into her TFSA. She believes investing and passive income is key to earning financial freedom. She also uses her Aeroplan TD credit card to collect Aeroplan points so that she can save money when she travels.

Click on the star to rate it!

How useful was this post?

Research & Compare

Canada's Loan Comparison Platform

Largest Lender Network In Canada

Save time and money with Loans Canada. Research and compare lenders before you apply. Share your experiences with Canada's top lenders.

Make Smarter Borrowing Decisions

Whether you have good credit or poor credit, building financial awareness is the best way to save. Find tips, guides and tools to make better financial decisions.

Industry Spotlight

What's happening with Canada's credit industry?

goPeer — Helping Consumers Achieve Financial Freedom by Connecting Canadians Looking For Financing With Canadians Looking to Invest

goPeer — Helping Consumers Achieve Financial Freedom by Connecting Canadians Looking For Financing With Canadians Looking to Invest

goPeer is Canada's first consumer peer to peer lending platform and connects creditworthy Canadians looking for a loan with everyday Canadians looking...

Read Post
Locator
Find The Best Rate
In Your Region
OR
Best Personal Loan Provider by Greedy Rates
Icon

Confidential & risk-free

All consultations and conversations with Loans Canada and its partners are confidential and risk-free. Speak with a trusted specialist today and see how we can help you achieve your financial goals faster. Loans Canada and its partners will never ask you for an upfront fee, deposit or insurance payments on a loan. Loans Canada is not a mortgage broker and does not arrange mortgage loans or any other type of financial service.

When you apply for a Loans Canada service, our website simply refers your request to qualified third party providers who can assist you with your search. Loans Canada may receive compensation from the offers shown on its website.

Only provide your information to trusted sources and be aware of online phishing scams and the risks associated with them, including identity theft and financial loss. Nothing on this website constitutes professional and/or financial advice.

Your data is protected and your connection is encrypted.

Loans Canada Services Are 100% Free. Disclaimer

Keep Track Of Your Credit Score

Subscribe with Credit Verify to monitor your credit rating and get your free credit score.