In Alberta, Canada, credit counselling agencies offer a range of services that can help individuals gain control of their finances and work towards becoming debt free.
If you’re struggling with debt in Alberta, credit counselling can be a valuable resource to help you regain your financial stability.
What is credit counselling?Credit counselling is a type of financial service designed to provide guidance and support to individuals who are struggling with unmanageable debt.
It involves working with credit counsellors, trained professionals who act as money mentors.
Your counsellor will provide money coaching and debt education to help you gain a better understanding of your financial situation and develop a plan to improve it.
Credit counselling services may include budgeting assistance, debt management strategies, and credit score improvement advice.
The ultimate goal of credit counselling is to help individuals become debt-free and achieve financial stability, which can happen in various ways, whether through debt consolidation, or other debt repayment plans.
Credit counselling services are available to Canadians across the country, and can be a valuable resource for anyone in Alberta who is looking to take control of their finances.
How does Alberta credit counselling work?The credit counselling process works slightly differently for everybody depending on their specific financial circumstances, but usually involves the following steps.
Free financial evaluation from a credit counsellorCredit counselling typically begins with a free financial evaluation from a credit counsellor.
During this evaluation, the counsellor will review your income, expenses, and debts to get a clear picture of your financial situation.
Based on the information your credit counsellor receives, they will work with you to develop a customized plan to help you manage your debt and improve your financial health.
Enrolling in a debt management programOne option for clients may be to enroll in a debt management program. This works like a slightly adjusted version of debt consolidation, where you will work with your credit counsellor to consolidate your debts into a single monthly payment with a lower interest rate.
The counsellor will work with your creditors to negotiate interest relief, and may also be able to help you reduce or eliminate fees and penalties.
By consolidating your debts, you can make it easier to manage your payments and reduce the overall amount of interest you’ll pay over time.
Gaining financial knowledge to help you stay out of debtA key aspect of credit counselling is gaining financial knowledge to help you get out of debt, but it’s just as crucial to provide you with the knowledge that enables you to stay out of debt in the future.
Credit counsellors can provide education on budgeting, saving, and credit score improvement, as well as tips for managing your finances more effectively.
By learning these skills, you can better manage your money and avoid falling into debt again in the future.
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How long does credit counselling take?The length of time it takes to complete credit counselling will depend on your individual situation and the debt relief solution you choose.
There are several different debt relief solutions available, each with their own timeframe for completion.
Debt consolidation loans, for example, can take anywhere from a few months to several years, depending on the amount of debt and the interest rate you’re able to secure.
It’s important to work with a credit counsellor or Licensed Insolvency Trustee to get a better idea of what would work best for you.
Overall, credit counselling is not a quick fix for debt problems, but rather a long-term strategy for achieving financial stability.
By working with a credit counsellor, you can develop a customized plan that takes into account your unique needs and financial goals, and work towards becoming debt-free over time.
Where do you find credit counselling agencies?There are many credit counselling agencies available in Canada, and they can be found in a variety of places. Some common sources for credit counselling agencies include:
Credit Counselling Society: This non-profit organization has offices across Canada and offers a range of credit counselling and debt management services that are available in Alberta.
Canada Revenue Agency: The CRA offers a free debt management program called the Taxpayer Relief Program, which can help individuals who are struggling to pay their taxes.
Provincial Government websites: Many provincial governments have resources available to help individuals find credit counselling agencies and other financial resources. You can find the Government of Alberta website at: https://www.alberta.ca/index.aspx.
Financial Consumer Agency of Canada: The FCAC is a government organization that provides information on financial products and services, including credit counselling agencies.
Will using free credit counselling services hurt my credit?Using credit counselling services in itself does not typically hurt your credit score. However, the specific debt relief solution you choose may have an impact on your credit.
If you enroll in a debt management program, for example, your credit score may be negatively impacted in the short term.
This is because you will be making reduced payments on your debts, which can be seen as a sign that you’re having difficulty managing your finances.
That said, as you make consistent payments over time and reduce your debt, your credit score is likely to improve. It’s also worth remembering that the damage of using a debt management program is likely to be less severe than if you continually default on payments.
Your credit counsellor will be able to help you understand the potential impact on your credit, and explore all available options with you before making a decision.
Here’s an example of how we can help
Let’s say you owe…
Canadian Tire Card
TD Bank Overdraft
Total amount owed:
Repayments reduced by 88%
* monthly payments are based on individual financial circumstances
Where can I get help to improve my financial situation?If you’re facing financial problems due to debt and seeking a solution to achieve a debt-free life, A. Fisher & Associates is here to provide the guidance and support you need.
As Licensed Insolvency Trustees, we understand that debt can have a significant impact on your overall well-being. Our goal is to help you overcome problem debt and and move forward with confidence
Our team can help you explore your options and develop a personalized plan to improve your financial situation. Contact us today to take the first step towards a brighter financial future.