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Credit Counselling Services in Canada

Credit Counselling Services in Canada

Those who become overwhelmed with debt may think that a program offered through Credit Counselling is the right solution. The problem is that Credit Counselling companies are trained to offer one type of service, which is a debt repayment program.

The amount of debt you are in, who you owe money to, what assets you have, what type of job you have and other vital factors, should be considered before considering Credit Counselling as it may not be the right choice.

Credit Counselling involves paying your creditors much less that what you initially agreed to pay, much like a consumer proposal or bankruptcy. Your creditors and other financial institutions will not treat you with favor because you opted for a credit counselling program over a consumer proposal or other methods of debt settlement.

Credit counselling will also turn all of the ratings on your credit report to a “R7” and “I7” which indicates that you have entered into a credit counselling program and these ratings will remain on your credit for 3 years from the date the Credit Counselling program is paid in full.

Credit Counselling companies are not as aggressive at negotiating with creditors as some companies who administer other methods of dealing with debt settlement which often results in the consumer paying more. Traditionally Credit Counselling companies have been largely funded by donations from the major Canadian Banks (the same creditors that they negotiate with on your behalf). The rest of their funding comes from a percentage that they deduct from each and every payment that you make in your credit counselling program.

Generally Counselling best addresses the needs of low income earners who have no assets and owe less than $10,000 in debt.

DebtCare Canada is the first Financial Consulting Company of its kind! We work for our clients and perform an unbiased review of your entire financial profile. We then make recommendations that consider all of the implications – your job, credit and relationships.

We then offer access to a number of Federal Government programs that provide immediate relief to those suffering with debt.  In cases where debt settlement or credit counselling is the best choice, we have licensed credit counsellors on staff who are able to guide you through the process. We are effective at stopping collection calls as well as wage garnishments and are focused on providing you with viable and realistic strategies to deal with your debt.