Credit Counselling is counselling that is set up to help place your finances under control while assisting you in getting rid of your debt. In Canada this is done through non-profit credit counselling services that are provided by credit counsellors who are accredited debt management consultants. This type of service helps you develop a personal budget plan to assist you in avoiding future problems. They also assist in placing you into a debt management plan when already in debt.
Credit counselling has four steps one can take to receive counselling. The first step is to call and set up an appointment. The second step is to gather your records and meet with a counsellor to review your financial situation. The third step is where the credit counsellor will recommend a plan to help you and explain all the details based on your personal needs. The fourth step is following your plan and becoming debt free. The final step is a very important step because in order to see success you need to follow the plan and budget laid out to help you.
Credit counsellors develop their solution through giving you some personal finance and budgeting tips that will help you see where you can cut expenses to pay off more debt. This can be the solution, however if it is not, they will then look into involving a debt management plan. This is where your counsellor contacts the creditors and negotiates a debt settlement on your behalf where you agree to repay your debts in full over a period of 3-5 years. It is at this point where your creditors usually agrees to stop all collection activity and cancel all future interest.
Credit counselling can be as simple as providing you with the budgeting and financial tools you need to manage your finances in a way that meets not only your needs, but the needs of becoming debt free. It also can be as simple as developing a debt management plan to assist you in a settlement with your debts, if you are unable to budget yourself enough to solve your money problems.
Credit counselling Ontario works to assist in finding financial solutions for an individual who wants to become debt free. It also provides you with the money management skills you need to succeed. Credit Counselling strives to equip you with a fresh financial start to living your life again debt and hopefully stress free.