Make the Right Decision By Choosing a Credit Counseling
Do you have financial problems? Perhaps you’re worried about debt collectors or saving money for retirement? In that case, you might need to use the services of a credit counselor.
What Is Credit Counseling?
If you require advice on consumer credit, money management, debt management, and budgeting, credit counseling will be quite beneficial. Many credit counseling professionals aim to provide you with solutions that will help their clients, who are having trouble making their payments, avoid having to file for bankruptcy.
If you’re in Canada, you can also go to a licensed insolvency trustee in Toronto, who has the necessary expertise and can provide guidance and solvency solutions for both businesses and individuals. Bankruptcy can completely change one’s lifestyle and opportunities. That is why it is often best to try and avoid it as much as possible.
However, if you are not familiar with techniques you can use to get out of your financial troubles, it will be more reassuring to get help from qualified and federally licensed financial counselors.
Many counseling services also negotiate with creditors on behalf of the borrower to reduce loan and credit card interest rates as well as waive late fees. So it can help alleviate the stress of having to deal with it directly yourself.
When to Seek Out Credit Counseling?
You can seek counsel whenever you want, but generally, people talk to credit counselors when they have difficulties paying back their debt or keeping up with payments. There is no harm to your credit score if you talk to a counselor, and it will benefit you in the long-run.
Some warning signs that indicate you may need credit counseling are:
- Making only minimum monthly payments
- High credit card debt
- Being turned down for loans
- Low Credit Score
- Calls from collection agents
- Garnishment of pay cheque or bank account
So if you notice any of these signs, it’s probably time for you to consult with a licensed insolvency trustee and make your dream of being debt free a reality!
How Does Credit Counseling Work?
An agency specialized in credit counseling can provide various services, including:
- Individual counseling
- Group courses and seminars on topics like making a budget and using credit wisely
- Plans for debt management
Once you discuss your next steps and decide to also include a debt management plan, your counselor will talk with your creditors to try and reduce your fees. Usually, all of your debts will be combined into 1 monthly payment made to the agency which will then pay each of your creditors on your behalf.
In the chance that you have no other way than to file for bankruptcy, a licensed insolvency trustee will also help you with the documentation and provide help in obtaining in-bankruptcy financing for a car or credit card.
Hopefully, this article helped you get a glimpse of what credit counseling is and how you can benefit from it in the long run. Remember, talking with a credit counselor does not influence your credit score, so don’t be shy and get help before things get worse.