Many Canadians take loans to purchase a new house, pay for their education and acquire goods and services. Unfortunately, if loans are not paid on time, they can result in accumulation of debt!
If you’re struggling under a mountain of debt, you probably feel like you’re stuck in a rut! You feel as if you’re running out of options. Except…you’re not.
Credit counselling can not only help you manage your finances, it can also help you get your life back on track! Unfortunately, misconceptions about credit counselling are running rampant. Individuals avoid seeking help because they feel it will not be helpful. Not only is this not true, it can help reduce your debt significantly. Here are a few common misconceptions:
- Credit Counselling is Expensive:
Some credit counselling companies provide cost-effective solutions without any hidden charges. You can even get a free consultation if you are unsure. They will be able to guide you through the process and you provide you with a plan that fits your budget.
- There is Fraud Everywhere
It is good to be cautious and take precautionary measurements! With that in mind, look for a credit counselling company that is registered with the OSB and Industry Canada. Companies that are certified are genuine because they are bound by Federal law.
- It Will Hurt My Credit Score
Many credit counselling companies do not report to creditors. In fact, after getting credit counselling, many debtors find their credit score improving. This is because their debt decreases as payments become consistent. Furthermore, your counsellor will negotiate your debt with your creditors and have it reduced significantly.
- Credit Counselling Only Offers Advice
Your counsellor will sit down with you and plan everything out. They will assist you in planning lifestyle changes, negotiating your debt and how to fix your credit score.
The goal of your counsellor is to provide you long-term solutions and not short-term ones. Therefore, it is important to discuss your concerns with them and ask as many questions as possible so that you have a clear idea of what your next step should be.
- You Don’t Have to pay the Bills
The main purpose of debt counselling is to help you pay the bills and effectively manage your debt. Your counsellor will negotiate with your creditors and reduce your debt significantly, without you having to pay any interest. But you still have to pay in low, monthly instalments.