Credit Counselling Canada

Credit Counselling Canada

Debt managers or Credit Counsellors in Canada provide services mainly for Canadians who are having difficulty with their financials. One of the most common services that they provide to Canadians is to help pay down credit cards, student loans and other debts. They also improve your piece of mind by handling all your debt and stop harassing phone calls from collections agencies.

We all need help sometimes

In Canada, we can be thankful that there are many programs available and counselling agencies that help manage debt. Canadians no longer have to claim bankruptcy. There are debt solutions created to help repay loans at lower rates and clear off debt in a much shorter time.

As Canadians, we do what we can to make ends meet, to put food on the table and to put clothes on our children and sometimes, we fall behind managing the many due dates and amounts we have to pay. Getting along day by day is a difficult and we all come across this in our lives. Credit counselling in Canada offers programs to Canadians to make it easier to manage financials.

How can Credit Counselling in Canada help?

Credit counselling agencies can provide immediate relief of bill payments, calls from collections agencies and reduce your monthly payments dramatically. It is a good option for Canadians to manage their debt without going through bankruptcy and court procedures.

Credit Counselling services work by giving providing you with debt management experts to offer advice and help you to get back on your feet. Canadians will find that plenty of help is available.

Credit Counseling in Canada works by

  • putting you back on track with your bills
  • reduce your monthly bill payments
  • debt counsellors will manage debt and creditors on your behalf
  • debt counsellors manage, arrange and make payments for you
  • reduce interest rates dramatically on all credit cards. Many times interest rates will be 0%
  • teach you about fixing your credit, credit history and improve your overall credit report
  • leave you debt free. No more bills to pay!

What happens to my credit report?

When you go to into credit counselling, your Canadian Credit reports will show that you are make regular payments and on time. On your credit history, an R7 rating will be assigned which indicates that you are making regular payments to creditors through a debt arrangement. While you are on debt counselling, you will not be able to apply for new credit cards. The R7 rating will have an impact on your credit scores and will make it difficult for you to obtain new credit cards and loans for 3-5 years. In comparison, if you were to file for bankruptcy, it would stay on your credit reports for 7+ years.

Canadians who have completed debt management counselling generally tend to complete the program with better credit, no debt and overall a better life. Imagine not having to pay any more bills!

Credit Counselling Works

If you are considering credit counselling in Canada, make sure you explore all your options. Not all credit counselling services are equal and offer the same services. The cost of credit counselling varies in Canada and is based on the amount of debt you have incurred. Generally, payments to the credit counsellor is a very small portion of your overall debt. While in credit counselling, you will find that your monthly payments are over 50% lower than before. Debt management plans put together by the counsellor has worked for thousands of Canadians in financial need every year.

Before you enter into a debt management program, be sure to review your credit rating and credit history with the Credit Bureau of Canada. Reviewing your credit reports will help you manage your finances and help to get you back on track with your bills.