Credit counselling is a 20-40 minute meeting where a certified debt counsellor obtains information about your financial situation and will give you a personalized debt relief solution. Nonprofit agencies give you free consulting services – whether it is through the phone, in person, or online.
And in this guide, we’ll help Winnipeg residents decide if debt counselling is the best option or not. So without further ado, let’s get started!
Is Debt Counselling Good For You?
The biggest misconception about debt counselling is that you have to spend a lot of money to benefit from it. This isn’t true. Getting debt counselling is a great resource for people trying to get assistance with their financial and credit plans.
A Debt counsellor can help you with making a budget and finding how much you can charge based on your income. Get in touch with a debt counsellor if you are having trouble making payments on your debt/credit accounts. Unfortunately, some people wait until they are filled with multiple debt collectors at their door.
Being proactive will help you do a lot for your finances. So whether you’re a financial novice that is looking for tips on how to manage your debt, or if you are being crushed by the weight of your credit card debt, looking for professional assistance and a consultation is a great cost effective way to save time and reduce your financial headaches.
How Do I Get The Most Out of Debt Counselling?
If you want to utilize debt counselling to the fullest, it pays to plan ahead of time and take a full, honest assessment of your debts, income, resources, and opportunities. Make sure you gather all of your financial documentation that pertains to your expenses, income, and monthly debts so that you can provide evidence and help paint a picture for your counsellor of the full situation.
This helps ensure that your credit counsellor has all of the information needed to investigate your financial situation and provide solutions to fix your debt rooted in reality. Also, timing is important. You don’t want to feel anxious or rushed when going through this process, so pick a time that works the best for you and doesn’t interfere with your main priorities such as school and work.
We suggest that you schedule at least 60-90 minutes for this process without any distractions. By doing so, you’ll have enough time to find the best solutions to your debt issues without needing to cut corners.
Finding the Right Debt Counsellor Need help looking for the right debt counsellor?
There are a lot of companies that are claiming to help people get out of debt. Due to the increasing number of scams out there, it’s important to be critical when searching for a potential debt counsellor.
Look for the following things :
- Make sure that your credit counselling organization are accepted by the National Foundation for Credit Counselling.
- Examine the company on Better Business Bureau and see if it’s in good standing.
- Ultimately, search for a counsellor that you trust and are comfortable with.
Working with a debt settlement firm is different than working with a credit counselling organization. Debt settlement firms are usually private companies that help you settle your debt with creditors.
They might charge you fees up front and promise to help you with paying off your debt. Beware of debt counsellors or companies, and make they are verified before doing business with them. Debt counselling should be affordable and low cost. You should not have to waste money on an agency until they’ve met with you personally and assessed your financial needs.
What Should I Expect in A Debt Counselling Session?
Your credit counselling session might include:
- Referrals to other resources and tools
- Steps on how to fix your financial situation
- Free credit report review
- Free budget help (watch out for debt counselling organizations that charge for workshops and educational materials)
Based on your situation, a debt counsellor will help you make a debt management plan (DMP) to help you pay off your debts quicker, usually by giving you a payment schedule and lowering your monthly interest rates.
Once this plan is set up, a good debt counsellor will check up with you to see how the financial plan is going. If you still need some additional assistance, then you can schedule a follow-up session to ensure your debt plan is easy to understand and execute.
To conclude, there are a lot of debt counselling options available in Winnipeg. After selecting a reputable company, you’ll find it easier to pay off your debt within a few months or years. When in doubt, try to set up an initial financial strategy to pay your debt until you can meet with your counsellor who will help fine tune it and you’ll be fine.