Credit Counselling Helps Those Struggling With Debt

Credit counselling services help thousand of people who find themselves with more bills than income every day. Their goal is to find payoff agreements with your creditors while keeping your credit score in good shape. By consulting a counselor many are able to find manageable solutions to their financial issues without claiming bankruptcy.

Being behind in your bills is one reason to contact a counselor. Others seek them because of upcoming financial changes they will need to plan for. And some have gotten in way over their head and are seeking a way out. Whatever the reason the correct first step is to seek assistance from a qualified professional.

Creditors also prefer to work with these agencies to get you back on track because it benefits them financially. It is extremely expensive for them to employ staff to call those that are late on their payments. When an agency is involved they know they will receive their money and the agency keeps track of the person’s payment history for them.

Counselors will begin by running your credit report and discussing each debt on it with you. From this report they can see your overall debt, past payment history, interest rates and default for each debt. They will then take into account your current income and work with you and the creditors to find a payment that works for you.

After all the financial arrangements have been made the real work begins. The counselor will go over your spending habits with you and help establish habits that will keep you out of this situation in the future. Try not to take this step personally, the counselor is an objective third party that is only looking at the facts in front of them. Their advice is designed to keep you out of debt for life.

A common question asked by those considering counseling is will this hurt my credit? The answer is no. There will be a notation on your credit report stating that you are working with a counseling service but it does not damage your score. Some banks even view it favorably because you are taking positive steps to remedy the situation. With on time payments to the service many will see an improvement in their credit by the time the debt is paid off.

When looking for a counseling agency look at the fees they charge their clients. Many not for profit groups will assist those in debt for a very small fee or for free. They can do this because the creditor gives them a small percentage of the money they are collecting through them as payment for being the middle man. Be wary of those trying to charge high fees, they are most likely scams.

With the help of a qualified credit counselling Ottawa counselor most people will find themselves out of debt in two to four years. During this time it is important to remember that good money management practices are important. Take advantage of classes offered by the councilor to change your bad habits to good habits.

To help get your finances back on track consider the services provided by InCharge Canada. Their Ottawa credit counselling and debt settlement Toronto services can provide the right plan and education to help you reach your goals.