In the event you have accumulated so much debt that you are now straining to pay, it is time you considered restructuring your finances to enable you to permanently get out of debt and be able to manage your future finances properly. The most effective way to achieve this is by signing up to a Vancouver debt counselling service.
Debt counselling is a process in which a professional and experienced debt counsellor will help you manage your debt while providing you with skills and advice to enable you to know how to properly manage your finances so as not to get into unmanageable debt in future. With Victoria, BC credit counselling, you will have peace of mind as you will be able to regain control of your finances. During your debt counselling sessions, your Vancouver debt counselling expert will:
Help You Understand Your Debt Situation
Your debt counsellor will undertake an in-depth review of all your debts, your income, expenditure and assets so as to be able to understand how you got into unmanageable debts in the first place. With this information, they will have sessions with you to help you understand your debt situation and the major reasons why you accumulated so much debt. Understanding and accepting you have a debt problem is key in helping you permanently get out of debt.
Come Up with an Effective Debt Management Plan
To help you resolve your debt crisis, the best Victoria, BC credit counselling service will formulate an effective debt management plan for you. This will involve negotiating with your creditors to try and get a good solution for your debt like reducing interest rates, partial debt forgiveness, waiving of penalties or a payment grace period.
According to law, once a majority of your creditors agree to the consumer proposal put forward by your credit counselling firm in Vancouver, the remaining creditors have to abide by it. Most creditors usually agree to a negotiated settlement to enable you pay your debts as they will not be able to recover their money in the event you default on payments and are unable to pay.
With a debt management plan, Your Vancouver debt counselling firm will be responsible for your unsecured debt repayments and you will deposit money each month to the credit counsellor who will in turn pay your creditors.
Provide You with Alternatives to Clear Your Debts
If your debt counsellor feels you do not need a debt management plan, they will be able to come up with alternative solutions to help you repay your debts. They might propose you selling some of your assets to repay your debts or advise you to consolidate your debts. Debt consolidation entails the merging of all your debts into a single loan. Debt consolidation will help lower your interest rates thus freeing up some money while giving you psychological relief as you will only have to pay one loan, which only requires a single monthly payment.
Educate You On Good Financial Management Practices
To ensure you do not get back into unmanageable debt, your Victoria, BC credit counselling firm will educate you on proper ways to manage your income and rebuild your credit.