Step Two: Crafting a Tailored Debt Strategy
Every debt solution is different. That's one reason why we don’t recommend tackling debt on your own. Without experience, it’s very difficult to know where to start and who to turn to.
Get a Fair Evaluation of Your Debt Management Options
Our counsellors will help determine whether your best first step is enrolling into a Debt Consolidation Program, paying off a few of your smaller debts, negotiating with your creditors, or something else entirely, such as:
- Applying for a debt consolidation loan at your bank.
- Creating a budget that actually accommodates your monthly bills, instead of letting them pile up.
- Filing a consumer proposal or bankruptcy through a Licensed Insolvency Trustee (LIT).
- Borrowing from home equity (such as a mortgage or secured line of credit) to pay off your debts.
Learn the Basics of Money Management
Your Credit Counsellor will explain their best recommendations for you, given your financial situation, and you’ll know all the reasons why each solution could work. Your Counsellor will also answer any questions regarding any of your options, so you can make an informed decision about what you’d like to do next.
Once you feel you’ve regained control over your most immediate and pressing financial problems, your Credit Counsellor will help you learn the basics of sound money management, which helps you continue on the path towards financial freedom – and gives you a solid foundation to avoid debt in the future.
Step Three: Money Management
Our Credit Counsellors are here to help make sure that whatever led you into debt problems never becomes an issue again. They’re here to teach you money management skills that will help you for a lifetime.
Get Back on Track to a Better Life
Some people get into debt problems for reasons that are utterly beyond their control. For the most part, the cause of serious debt issues is simply that people aren't given the right tools for smart money management.
Most people have never been taught how to create and stick to a budget. Very few have been taught why and how to build savings or create a safety net. And almost no one has actually calculated the true cost of owning and using a credit card when you intend to carry a balance.
Start Enjoying the Debt-Free Life
Your Credit Counsellor will assist you in creating a household budget that works for you, your family, and your income, including setting aside money for your debts and for your future. We’ll talk about your goals in life, as well as your priorities for the future, and we’ll show you how your current income can support those goals with a little planning and strategizing.
You’ll also learn how to encourage yourself to keep moving forward, even when it’s difficult. There's immense reward for doing so, and our job is to help you keep your eye on the prize so you can enjoy a debt-free, fulfilling life.
Signs That You Might Need Credit Counselling
Here are a few telltale signs that you may be mishandling your money and would benefit from credit counselling.
Out of Cash?
Using credit because you don’t have cash on hand and paying only the monthly minimum payment.
Using Cash Advances
Using a cash advance from one creditor to pay another creditor.
Increasing Credit Limits
Requesting an increase on spending limits on credit cards, overdrafts, etc.
Taking Out Multiple Loans
Taking add-on loans or consolidation loans while continuing to use your credit cards.
Borrowing Money
Borrowing from a friend or family member just to make ends meet each month.
Too Many Credit Cards?
Applying for a second Visa or Mastercard at another branch.
Why Our Credit Counsellors Are Different
Our not-for-profit credit counselling agency, Credit Canada Debt Solutions, is a well-known financial leader. In fact, we've spent more than 50 years helping thousands of people with debt problems by using financial debt counselling to teach them how to manage difficult financial situations and move past them.
What You'll Get From a Counsellor
All of our counsellors are highly trained and certified. We are a trusted member of Credit Counselling Canada, and we're proud to have won the Consumer Choice Award for Credit and Debt Counselling Services 10 years in a row.
- You’ll speak to an expert in debt solutions – a real, qualified Credit Counsellor who knows all the ins and outs of the debt and credit world.
- You’ll get debt relief options that can work for your financial situation, support managing your personal finances, and a customized spending plan for your day-to-day expenses.
- You’ll get a sympathetic ear and a judgment-free assessment of your current financial situation.
- You’ll learn the smartest way to tackle your debt, and you’ll have a knowledgeable guide to walk you through every step of the process.
- You’ll have someone who will stand between you and your creditors while working through a solution.
- You'll be on the right path towards financial freedom with a clear understanding of the problem.
