Is Consumer Credit Counselling Service The Best Option for Me?
Each circumstance is diverse, a debt solution that works for someone does not necessarily follow that it will work for you. You must evaluate yourself and your finances to choose the best debt relief programs that are right for you. For instance, debt consolidation loans might be preferable for someone who does not look into getting their debt principal reduced; while it might not be the best choice if you want to reduce your debt principal.
Moreover, understanding each debt-relief option will help you decide which one will serve you best. On the other hand, if you seek in qualifying for a consumer credit counselling, you must enroll in a credit counselling agency that you can rely on making a sensible plan for your situation. Besides, considering your options includes several factors which are listed as follows.
Your Financial State
Consumer credit counselling is practically the option if you can resolve your financial situation with just minor adjustments in your debt duration and interest rates. Therefore, it is ideal if your debt does not reach beyond $10,000. In cases wherein your consumer debt level is higher, other debt solutions such as a debt settlement would be more viable for you. So, regardless of the effect on your credit repute, you will likely settle on the other debt solution rather than solving your indebtedness alone.
In contrast, if your debt level is lesser than $10,000, consumer credit counselling would be more favorable in helping you cope up with your attitude towards borrowing. It is an ideal option for you that will prevent your situation from reaching into the state of filing for a consumer proposal or in worst cases, file for bankruptcy. In a credit counselling, your counsellor will help you negotiate in lowering your average interest rates that can lessen your debt payments each month.
Another factor that has to be considered is your attitude towards consumer credit counselling and other debt solutions such as debt settlement. Since consumer credit counselling is not a quick fixed to your financial struggles, it requires more patient and persistence in diligently following the plan. It is a great option for those who don’t mind the duration of time that it can take for a consumer credit counselling to complete.
On the contrary, if you don’t have much patience in waiting for the process, a debt settlement approach is more suitable for you. It can only take a matter of 12 to 36 months for you to get rid of your debt in a debt settlement. Moreover, companies offering a debt settlement can potentially help you to be free from debt in less than 12 months. This may be a possible duration on a consumer credit counselling; however, it will depend on the amount of your debt and your attitude in paying more than the minimum each month to cover payment for your debt principal.
Although credit counselling requires more waiting, it doesn’t mean that it is not the best option for someone, especially to those who need guidance and education in making their finances. The biggest advantage that you can get in a credit counselling is perceived as a long term benefit as it teaches you how to manage your finances effectively without sacrificing the comfort of living.
Be Certain What Debt Solution Is Right For You
Before jumping into a conclusion, it is ideal that you evaluate your situation to choose from a consumer credit counselling or other debt relief solution. To be guided on the best option for your current financial struggles, simply fill out the debt relief form and get the help that you need today.
CONSUMER PROPOSAL EXAMPLE
Example Unsecured Debts
|2||Credit card 1||$6,812|
Your Monthly Repayments Would Be
a Consumer proposal $748
(total contractual repayments)
a Consumer proposal $295
(total contractual repayments)
* Subject to creditor acceptance
* Payment subject to individual circumstances
* Credit rating may be affected
* Fees apply, subject to individual's circumstances.