4 Credit Counselling Tips for the Regular Canadian
The majority of people will experience some level of financial difficulty in their lifetime. Whether it is during college and school debts are piling up, or if it is later in life and bills are seemingly endless, financial difficulty is a stressful time. There are some great credit counselling services available, but it might be difficult to know if these services will truly help. Here are the top reasons you should get credit counselling.
💰 1. Seekconsolidation of debt
If you have multiple sources of debt, it can be overwhelming to know which one to focus on. There can be multiple credit cards, vehicle loans, or any other kind of loan or debt. When using credit counselling, they will help you consolidate that debt to allow you to pay down one simple payment. It is much easier to manager, and helps you see your debt getting paid down.
💰 2. Obtain lower interest rates
When debt begins to grow, so do the interest payments made against those debts. Especially with credit cards, the interest rates can be very high, making it almost impossible to pay down large debts. A credit counselling Service will help negotiate better rates, which has several benefits, including making the payments lower and the possibility of paying off debt that much easier.
💰 3. Ask for financial advice
The reason so many people get into debt in the first place, is often associated with bad financial habits. They might be spending money they don’t have, avoiding budgets, and ignoring savings and retirement. When working with a credit counselling Service, an agent will sit down with you and go over some of the basics to developing better financial habits. They will work with you to create or revise budgets, help eliminate bad spending, and develop strategies to build savings.
💰 4. Strive for lower costs
When people are struggling with finances, it can seem counterintuitive to pay money to someone to help them with their money problems. When you don’t have a lot of money, paying more money to someone is a risky venture. However, credit counselling Services is not that costly. There are several not-for-profit services available, but even the basic services are not that expensive. They often charge an upfront cost, and then a small fee per month for as long as you use them. For the relatively low cost, it is a great option to help get out of debt.