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2 00.00 What is Credit Couneslling? Is it right for you?
Product description: Credit Counselling combines debt consolidation and a formal consumer proposal.You stop all collection calls, and get possibly lower interest and payments.


Why Credit Counselling

May Be A Bad Choice

Current as of

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What Is Credit Counselling?

Is It Right for You?

Credit Counselling combines debt consolidation and a formal consumer proposal.You stop all collection calls, and get possibly lower interest andCredit Counselling services, including the so called non profit firms, make their money by charging you fees and commissions either directly or hidden. They are not free.






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You might consider a credit "counselling" program now which will stop creditors from harassing you.

You can then investigate a formal consumer proposal or bankruptcy.

Consumer Proposals permit you to make a proposal to your creditors to pay off your debts.

Consider that a formal consumer proposal or bankruptcy may well permit you to recover a good credit rating much faster than credit "counselling". Negative credit items remain on your credit report for to seven years. This would include the records of your credit "counselling" and a list of your "bad debts."

Bankruptcy will "cancel" your debts with strict provisions. It also remains on your record for up to seven years, but you may well be able to re-establish credit after a couple years.

Know that the banks and credit card companies fund most credit "counselling" agencies. This makes economic sense since it helps save the banks the high costs of collections.




So called Credit Counselling is really a combination of debt consolidation and a formal consumer proposal

You benefit from the instant relief from collection calls, and possibly lower interest and lower payments.

There is no counselling and the people who offer the service make their living by fees and commissions earned by collecting your monthly debt payments and passing them on to your creditors.

Any one can experience debt problems. The important thing to remember is that you have options.

Many credit counsellors are just plain sales people with no training, no licence and get paid on commission

There have been frauds where consumers gave the credit counselling service their payments and the payments were never sent on to the debtor. See More . . .



Credit "counselling" companies claim they provide "counselling" for people in debt and helps devise repayment plans for consumers with financial difficulties.

They say they

  • offer guidance on money management,
  • help arrange repayment schedules affordable to the debtor and acceptable to the creditor,
  • assist in developing personalized budgets and advise on bankruptcy procedures.
  • Arrangement with creditors, through a debt management program
  • Budget planning
  • Alternatives to bankruptcy
  • Rebuilt credit through credit rehabilitation
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