How can a Consumer Credit Counselling Agency Help Me?

How can a Consumer Credit Counselling Agency Help Me?

How can a Consumer Credit Counselling Agency Help Me?
Before you take a pick between the several debt relief options available in Canada, you may need to consider the following points:

• The expenses and cost at stake
• The effect of the debt solution program to credit score
• The duration that It will take to come out debt-free in this program
• The long term effect of this debt relief approach to stay out of debt

Who Will Get Accepted in Credit Counselling?

Credit counselling is designed for someone who seeks help in lowering their interest rates and managing their finances wisely. You will get more benefit and appreciate a credit couselling approach if your consumer debt level is less than $10, 000. However, if you owe more than this amount, a debt settlement is perceived to be the practical means to resolve your indebtedness.

Moreover, consumer credit counselling is designed for individuals who can still manage to pay for the required minimum each month, regardless of their struggles in coping up with their monthly expenses. Besides, it is also a practical alternative for someone who can pay their debt payments if creditors will grant a reduction on their interest rates, making the minimum payment reduced each month. However, in certain cases, wherein you’re still unable to pay the required amount despite the reduction, you will have to consider evaluating yourself and your situation whether you qualify in filing for bankruptcy.

Pros and Cons of  Consumer Credit Counselling Agency

There are several benefits that you can get from a consumer credit couselling agency. Besides, there might be a few disadvantages, but this is outweighed by the good aspects that you can get in a credit counselling agency.

Pros

• Credit counselling agency includes education and mentoring on how you can stay on budget without sacrificing the comfort of living. This will yield a long term positive outcome as you can acquire pertinent knowledge and strategies on how to manage your finances. Learning to live on what you can afford is a huge aspect that will help you stay out of consumer debt. Getting such education can prevent you from worsening your situation that can potentially end up to bankruptcy.
• Through consumer credit counselling agency you can get a better reduction on your interest rather than negotiating by yourself. The lower your interest rates upon negotiation with your creditors the easier for you to pay off your debt each month. This is because your monthly payments will also be lowered. By doing so, you can prevent your debt to pile up. Besides, lowering your minimum payment each month may help you save some money which you can add to pay for your principal. This is because when paying more than the minimum, the excess will go towards your debt principal.
• Negotiating better terms through a credit counselling agency, can reduce your burden as you won’t have to personally handle the negotiation yourself.

Cons

• ONLY when enrolling in a debt management plan, you will have to pay for certain fees. This may include monthly payments and administrative fees. However, the cost you spent is acceptable as you get a concrete and practical spending plan that will help you manage your living expenses.

Who Can Help Me?

Getting an expert advice from a reliable agency is a must to help you explore the best option for your situation. If you are uncertain whether a consumer credit counselling suits your financial condition, simply fill out the debt relief form to explore the several options for you.