Debt Counselling: Will It Work for Me?

This may be the first time you’ve ever needed help with your debt problem and you might not know where to turn. Maybe all you might need is a bit of debt counselling? And maybe not… The advice in this video may save you thousands of dollars in unnecessary fees, so pay careful attention.

When people discover they have a significant debt issue they typically do a Google search using words like ‘help with debt’ or ‘debt help’. Results will vary dramatically depending on the geographical area you live in.

However, there are five main types of services that will appear in the search results. They are:

  • Payday loans/reverse mortgages (deeper in debt)
  • Credit Counselling (debt counselling)
  • Debt Consolidation
  • Bankruptcy
  • Consumer Proposal

If you haven’t had to reach out for help with debt before – how would you know where to start?

A word of advice – don’t begin your research by talking to a company or organization that offers only one kind of solution, for example, credit (debt) counselling. They are going to want you to believe their services will work for you – but you don’t have anything to compare it with.

Recently, the Canadian Government warned consumers about the risk of paying unnecessary fees to ‘debt consultants.’ You would be well advised to be very careful about these services.

Frequently, a consultant will take your information and will then hand your case to a Licensed Insolvency Trustee (LIT) – but only after you have paid them a fee for their help. This fee can be thousands of dollars and is totally unnecessary.

You can sidestep these potholes by going straight to an LIT and explore your options with them directly. You will not pay anything for your initial consultation.

LITs are the most extensively trained professionals in the debt-help arena. They carry a license from the Canadian government which means they can provide you legal protection from your creditors.

It’s a little known fact that LITs are the only debt professionals that can give you this protection. Credit counselling services, debt consolidation companies and any kind of ‘debt consultant’ cannot provide you legal protection of any kind.

This means that if your repayment plan fails, or you cannot sustain it, your creditors can take you to court, garnish your wages, call you and send collection notices.

I’m sure you can see what we’re saying here – debt help comes in many forms. Counselling is only one of your options and may not be the right solution for you. So it makes sense to begin your research with a Licensed Insolvency Trustee.

By doing so you will automatically have access to the widest range of debt solutions in Canada under one roof and experienced professional to guide you toward the best solution for you.

Contact us now and let us help you plan your debt-free future.