When to Seek Debt Counselling

a man looking stressed while reviewing the bill payments he owes

If you’re struggling to pay your bills, debt relief solutions have likely crossed your mind.

Managing your finances doesn’t have to be difficult, all you need is to be steered in the right direction. Debt counselling services are offered by credit counsellors, who provide individuals with guidance on consumer credit, debt management, and budgeting. All of which are key elements in achieving financial stability.

Bankruptcy is usually the last resort when it comes to paying off debts, as the debtor will likely lose most of their assets as well as take a hit to their credit score. Counsellors devise strategies and debt management plans that’ll slowly but surely relieve their clients from piling credit.

A certified counsellor can help you take the first steps in the right direction and find solutions that work best for your situation.

How Debt Counselling Works

Making late payments to your car, mortgage, or credit card bills negatively affects your credit score.

a woman on the phone with a creditor worried about paying her bills

A licensed insolvency trustee will analyse your financial situation, including your income and expenses, and design a plan that’ll not only get you out of debt but help you stay debt-free permanently.

After an initial examination has been completed, you and your advisor will put together a long term plan. This should include detailed information and advice on budgeting, planning, making payments, and a prevention plan.

For this solution to work, it’s important to commit to the process and follow the advice you receive from your counsellor. Debt counselling is best for people with a lower amount of debt, as you’ll be repaying what you owe under a debt management plan.

What Are the Advantages of Debt Counselling?

Unlike the terms of filing for bankruptcy or a consumer proposal, there are generally no qualifications for seeking debt counselling.

The ability and skill to effectively manage money are incredibly important, especially if you’re beginning to drown in debt. When you apply for debt counselling, you’ll no longer have access to credit. You will solely rely on cash from your income to cover household expenses.

This will help teach you not to rely on credit for all purchases and instead use cash. This will greatly help you stay out of credit card debt.

While under debt review, your counsellor will obtain an order that protects your assets from creditors. This will stop any repossession activity and calls demanding payment.

People tend to shy away from filing for bankruptcy due to the effects it has on their credit score. Seeking debt counselling, however, will not have any effect on your rating since no one aside from your creditors will know you’re receiving counselling.

Trusted Debt Counselling Services in Ottawaa Licensed Insolvency Advisor working with a client for debt counselling

Much of the stress that comes with dealing with debt comes from your creditors contacting you every day and demanding payment.

We will work closely with you to determine a plan that’ll help you get out of debt and stay out of it, while also stopping the incessant creditor calls. This approach will be completely tailored to your unique financial situation and needs so that you can still take care of your daily expenses.

Reach out to us to learn more about our debt counselling services and book your consultation today.