Can Credit Counseling Help You Get Out of Debt?

  • By Jillian Taylor-Mancusi

 

Debt has a way of quickly getting out of control. Not only is credit easy to obtain, but the ability to purchase things immediately without having to pay cash can be tempting for anyone. Before you know it, minimum payments start to add up and you’re in over your head.

In Kenora, credit counselling can help can get you out of debt and control your finances.

What is credit counselling?

Credit counselling is basically exactly what it sounds like—counselling from a financial professional to help you learn how to manage your credit.

During credit counselling, your counsellor will help you understand the impact of buying things on credit. You’ll also learn more about interest, budgeting, and other aspects of personal finance that will help you control your spending. Many credit counsellors will also work with you to develop a debt reduction plan.

How can I tell if I need credit counselling?

Have you ever asked yourself, “Where does all my money go every month?” Often, people who benefit the most from credit counselling are those who have a steady job or good income, but never seem to have enough money left over to pay the bills.

You may also find credit counselling useful if:

  • You can only afford to make minimum payments each month
  • Your credit cards are maxed out
  • You’re unsure of how much you actually owe
  • You have creditors calling to collect past due payments
  • You often overdraft your checking account
  • You can’t afford to make payments on time
  • You purchase nonessentials like designer clothes and shoes, vacations, or other little luxuries on credit because you can’t afford to pay cash

These are just a few signs that your credit has gotten out of hand. While credit counselling won’t solve all your problems overnight, it will help you develop a plan to get back on track.

Where do I go for credit counselling?

A licensed trustee in bankruptcy can provide you with the counselling you need. In fact, if you should ever need to file for bankruptcy, counseling is a mandatory part of the process.

What if credit counselling doesn’t help me?

If your debt problems are a little more serious, credit counseling may not be the best option. Despite their name, bankruptcy trustees handle more than bankruptcies. The first consultation, which is free, will help you understand what options you have for getting your debt under control. This could include a consolidation loan, consumer proposal, or possibly bankruptcy.

When you’re in debt, it often seems like there’s no way out. However, this is never the case. In Kenora, credit counselling has helped thousands of people take control of their debts and get back on track. Contact a trustee for help.

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Start getting out of debt today.

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