Credit Counselling: is it a good option?

Credit Counselling: is it a good option?

More so now than ever before we see people worry about their debts. COVID-19 brought an unprecedented reality to all of us. If you are out of work as a result of the coronavirus pandemic, you have noticed by now that the bills were not brought to a halt, just like the rest of us. Millions of people are faced with making some tough choices, like determining which bills they should pay, which ones can be temporarily put off, if you can live without the service or product.

However, dealing with debt obligations is not a new thing and is not a direct result of the pandemic. Many people have struggle in the past due to very high debts. This is the reason why credit counsellors have existed for a long time. Now, more so than ever, people are considering them as an option to the situation they are in. Know that simply talking to a credit counsellor will not affect your credit score.

A credit counselling agency can provide a range of services, such as a one-on-one counselling, tips and seminars on topics such as how to make a budget and stick to it, as well as debt management plans. Before you decide to see one, make sure you find out what the cost will be and if it is worth it for your situation. If you decide to see one, they will assist you in the management of money and debt through financial advice that will then provide a base for future financial decision. Ask the following questions about services to help find an agency that is right for you:
* Is the first consultation free
* What services does the agency provide
* Will the agency provide you with a written proposal describing how they will help
* What type of support will the agency give to help you to improve your money management skills
* Will the agency provide you with monthly statements of payments

What are the advantages?
A credit counsellor will give you hope – you will have a feeling you are taking back control of your financial situation. This person will teach you how to create a realistic budget and ways to follow it, to avoid further debt; they will negotiate on your behalf with your creditors to renegotiate payment plans and to see if they can get lower interest rates for you.

Don’t panic. Seek help. We’re here for you. During these difficult times, we will assess your information, advise on the best options for you, and inform you about program and government assistance for people in debt.