How Can Credit Counselling Help You?

How Can Credit Counselling Help You

If you’re living with financial difficulties from debt, you can’t ignore your financial obligations. You may be receiving calls from creditors, maybe your wages are being garnished, you could be collecting serious interest on unpaid bills, and maybe you’re even using credit to cover basic everyday expenses. If this sounds familiar, then you know that it’s time to take charge of your finances, but you might not know just where to go.

When it comes down to making a major financial decision about debt relief, you need to take into consideration the true scope of your debt and how it could affect the assets and savings that you currently have. To truly understand what your options are for debt relief, you need to consult with a credit professional such as a Licensed Insolvency Trustee. These trustees, formerly known as bankruptcy trustees, offer credit counselling services and can guide you through all the sages of legal debt relief proceedings such as declaring bankruptcy or filing a consumer proposal.

Types of Debt

There are two major types of debt: Secured and unsecured debt. Secured debt can be quantified by something physical. It could be a boat that you have financed or a car, which makes it simple for creditors to reclaim the debt in the case that someone has defaulted on payments.

Unsecured debt on the other hand is not tied to a specific, physical thing. It can look like credit card debt, student loans, utility bills, lines of credit, payday loans, and any other type of debt that can’t be easily recouped by creditors the way they could repossess the property.

What’s the Point of Counselling?

Anyone who enters into a consumer proposal in Ontario or who declares bankruptcy in Ontario is required to complete mandatory credit counselling. The counselling is designed to help the debtor identify the decisions and circumstances that led to the insolvency in the first place.

What’s more, the counselling is the place where you and your trustee can work together to come up with a long-term plan for how you’re going to fulfill the obligations of your consumer proposal or bankruptcy. It’s also where you can decide on what lifestyle, spending, and saving habits you need to develop in order to work on your financial goals.

You’re Going Through a Difficult Time

You don’t need to be in a legal insolvency contract in order to benefit from credit counselling. In fact, someone who struggles with debt might think that their only choice is to file for bankruptcy, but a credit counselling session could show them that there is a manageable course of action to pay down debt.

Credit counselling can also be a huge help to individuals and families who are going through a rough time as it relates to personal issues like the death of a loved one, divorce, unemployment, or financial family conflict. Help is always available to those who are ready to receive it. If you’re thinking about getting counselling, take action today.