Get a free, no obligation personal loan quote with rates as low as 9.90%
Get Started You can apply with no effect to your credit score
📅 Last Updated: November 3, 2021
✏️ Written By Kale Havervold
🕵️ Fact-Checked by Caitlin Wood

While those in Charlottetown and the rest of PEI have lower average incomes than most in Canada, they are pretty average when it comes to consumer debt. However, just because their amount of consumer debt isn’t sky-high, doesn’t mean that people don’t struggle with their finances in one way or another.

For example, many people might be struggling with a low credit score. A low credit score can make borrowing money more expensive or can even prevent you from borrowing in the first place. Thankfully, services that can help anyone learn to improve their credit situation. Credit counselling in Charlottetown is a great way for consumer struggling with credit and debt issues to seak with an expert and get the help they need.

The True Cost of BorrowingDo you know what the true cost of borrowing is? Find out here.

What is Credit Counselling?

Credit counselling is a service that helps you to improve your financial situation. If you are struggling to get a hold of your finances or can’t get out of financial trouble, there is a good chance that credit counselling can help. Whether you need help budgeting more effectively, need to reduce spending, or simply want to up your credit score, credit counselling can help.

Credit counselling in Charlottetown and the rest of Canada is always performed by someone called a credit counsellor. They are educated and experienced in the space and will work with you to help find an appropriate and personalized solution to your financial troubles, no matter what they are. In fact, a credit counsellor will go over all your options including more drastic debt relief options that could help you, such as:

  • Debt settlement
  • Debt consolidation
  • Consumer proposal
  • Bankruptcy

While credit counselling is a great service and can be very helpful, it isn’t magic. You still need to make the changes in your life and put in the work to be able to succeed. The credit counsellor can’t do the work for you, but can simply help create a plan of attack for bettering your financial situation. You also need to be sure to be completely honest and open during the discussion, as that will help the counsellor help you come up with the best plan for your needs.

Click here to find out how long your credit counselling might take.

How to Choose the Right Credit Counsellor in Charlottetown?

While credit counselling needs to be done by a credit counsellor, there are likely dozens of different credit counsellors in your area. As a result, it is important to shop around and be sure that you choose the right credit counsellor. Not all credit counsellors are created equal and taking time to visit and critique a variety of potential options is a good idea (for more information on choosing the right credit counsellor, click here).

If you don’t know where to start, it is a good idea to start with the non-profit agencies in your area, if there are any. Of course, before you agree to work with any agency, you need to make sure that they are licensed and certified in your area. In addition to that, you should look into the reputation of the agency and make sure there are no huge complaints or other issues with the company. If so, it might be worthwhile to look elsewhere.

Also, since you are already in a bit of financial trouble as is most likely, it is logical to look at the prices that credit counsellors will charge. The last thing you want to do is spend a lot of money on something like this when you don’t have a lot of money in the first place.

Canadian Credit ScoreInterested in what affects your credit score? Take a look at this infographic.

Will Credit Counselling Affect My Credit Score?

When looking for a debt relief solution, it is normal to worry about whether it will negatively affect your credit score. While solutions like consumer proposals and bankruptcies will affect your credit in a negative way, we have some good news for you about credit counselling in Charlottetown.

Meeting with a credit counsellor and getting/using their advice will not affect your credit score negatively in any way. Of course, if you enter a debt consolidation program through your credit counsellor, that’s a different story. If your debt is reported as settled (and not paid off) to your creditor, your credit could take a bit of a hit.

But no, simply meeting with a credit counsellor and coming up with a plan to improve your finances will not result in any negative change to your credit score. This is great news as if you are struggling, there is really no reason not to at least visit with a credit counsellor and see if they can help your situation.

Check out this article if you want to improve your credit this year.

Looking For Professional Assistance?

If you’re currently struggling with your finances and are interested in seeking the help of credit counselling in Charlottetown, Loans Canada can connect you with a wide variety of credit and debt products.

More From Our Experts

What Is The Fine Option Program?
What Is The Fine Option Program?

Do you have an expensive traffic ticket you need to pay? If you're short on cash, consider the Fine Option Program, which lets you work the fine off.

What Is Debt-To-Income Ratio And How To Calculate It?
What Is Debt-To-Income Ratio And How To Calculate It?

Everything you need to know about what a debt-to-income ratio is and how it affects your ability to get approved for the loan you want.

How To Use Debt To Make Money
How To Use Debt To Make Money

Wondering how the rich get wealthy? Debt is often used to make money and get rich. Find out how debt is used to make money.

Debt Relief Programs In Canada: What Are Your Options?
Debt Relief Programs In Canada: What Are Your Options?

Debt consolidation loans, debt management programs, debt settlement, consumer proposal and bankruptcy: Find out which option is right for you.

What Is The Statute Of Limitations For Debt In Canada?
What Is The Statute Of Limitations For Debt In Canada?

Learn about the statute of limitations in Canada and how it can protect you from your creditors wanting to take legal action against you.

Debt Relief For Predatory Loans
Debt Relief For Predatory Loans

Predatory lending is a problem many borrowers face when trying get a loan with bad credit. Here's how you can protect yourself.

Does Bankruptcy Affect My Spouse In Canada?
Does Bankruptcy Affect My Spouse In Canada?

Does bankruptcy affect your spouse in Canada? Find out the implications of declaring bankruptcy when you have a spouse.

How Does A Foreclosure Affect Your Credit Score?
How Does A Foreclosure Affect Your Credit Score?

Everything you need to know about how a foreclosure will affect your credit score.

Learn How To Defer A Credit Card Payment
Learn How To Defer A Credit Card Payment

Are you struggling to make your credit card payments on time? Learn how you can defer your credit card payments.

High-Interest Debt: Tips On How To Get Out Of Debt In Canada
High-Interest Debt: Tips On How To Get Out Of Debt In Canada

Struggling to keep up with your debt load? We have all the tips and tricks you need to know how to get out of debt in Canada.

Why choose Loans Canada?

Apply Once &
Get Multiple Offers
Save Time
And Money
Get Your Free
Credit Score
Expert Tips
And Advice
Caitlin Wood Priyanka Correia Lisa Rennie Bryan Daly Cris Ravazzano Margaret Johnson Kale Havervold Liz Enriquez Sean Cooper Veronica Ott Corrina Murdoch Chrissy Kapralos

A Team of Experts

Get expert tips and guidance from a community of renown personal finance experts right here at Loans Canada. We're here to help you stay informed so you can make the best financial decisions.

Build Credit For Just $10/Month

With KOHO's prepaid card you can build a better credit score for just $10/month.

Koho Prepaid Credit Card