5 Ways Credit Counseling Can Help You

When you find yourself in a great deal of debt, it can be overwhelming. Depending on where you live, it may be difficult to find additional sources of income to help you get out of debt. In rural or remote areas, you may not have the option of working additional hours or finding a second job. Debt counselling may be able to help you turn your current financial situation around. When you go to debt counselling, you need to take a list of all of your debts, current expenses and income to the first session. This will help your counsellor to create a plan for you.

Create a Plan

Credit counselling can help you create a solid plan for your future. Your credit counsellor will help you set up a budget that gives you money for your necessities and help you find money to help you pay off your debt more quickly. Your counsellor can also help you set long-term goals so you can move forward and work toward owning a home, or other financial goals.

Get a Fresh Look at Your Situation

When you are in the middle of a bad financial situation, it can be difficult to find a way out. This can be especially true if you are working all of the time and you do not seem to be moving forward. The counsellor may be able to help adjust spending or point out that bankruptcy might be the best way to find relief from your current situation. According to the Office of the Superintendent of Bankruptcy, you must complete credit counselling before you declare bankruptcy, and so this is a step to complete if you are considering it.

Help Communicating With Your Creditors

It can be difficult to negotiate lower rates or payments on your own. A credit counsellor can work as your advocate to negotiate better terms and conditions. This can help to stop collection calls and late notices. It can make a big difference in how you deal with your creditors.  A lower interest rate will make it easier to pay off the debt, and lower payments may make everything more manageable.

Find Hope

A solid plan and budget can help you find the hope that you need to keep moving forward. Debt can feel like a physical load that is pulling down every aspect of your life. Credit counselling helps you to gain perspective, and following a set plan will help you break free of the negative situation that you find yourself in.

Repair Your Credit

A credit counsellor can help you create a plan to repair your credit history and score. This can make it easier to apply for a mortgage when you are in a better financial situation. Establishing a good payment history and paying off a large portion of your debt can help your credit recover more quickly than if you were to declare bankruptcy or keep going in your current situation.