Credit Counselling options & Debt Management
When dealing with financial issues there are different options available which have their own unique pros and cons. The option that may best fit your situation depends on the amount of your debt, your types of debt, your amount of income and monthly expenses, and the importance of your credit rating. One of these options is Credit Counselling.
There are many counselling services that can assist you out of Debt in New Brunswick, however, keep in mind that Licensed Insolvency Trustees are licensed by the Federal Government and subject to stringent codes of ethics. They are the only debt professionals who can provide a full range of financial solutions. A debtor’s goal is to get out of debt and re-establish their credit rating back in a decent cost-effective way as quickly as possible.
A Debt Management Plan is undertaken by a Credit Counsellor and done on an informal basis – however not all debt is included (i.e. Student Loans, Income Tax, Legal Action, etc.) and results in an R7 on your credit rating. Credit Counsellors that advertise as “non-profit” are funded by banks, credit card companies and other credit agencies, and may have a conflict of interest. This is not to say that all credit counsellors are not working towards helping you, but be aware that they can steer individuals away from bankruptcy or proposals which is not always in their best interest. Credit Counsellors often say they can offer you a better credit rating than a bankruptcy stating that it will ruin your credit rating, however, all payment plans are flagged by the credit bureau and will be a negative on your report. The services and counselling of a Licensed Trustee will protect you from being harassed by your creditors and they can help you with a proper debt management plan.
If you have concerns about advice a credit counsellor has given you, you have the choice of contacting a Licensed Trustee for a free consultation.
There is no obligation to use their services, however, a second opinion may benefit you and your credit rating.