Credit counselling services can be a great way to help those struggling with debt gain control of their finances. Most importantly, counselling can help you avoid those same financial problems in the future.
If you are having financial difficulties, your first step should be to take a close look your current debt. A bankruptcy trustee can help you review your present financial circumstances and determine the level of debt help you need. Credit card debt is actually the most cited factor causing Canadians to seek bankruptcy protection.If you’re hoping to avoid bankruptcy, the sooner you seek help, the more options you’ll have available to you. Credit counselling from a trustee in bankruptcy may actually help you avoid declaring bankruptcy in Canada.
Is Your Budget in Trouble?
The signs and symptoms of an unhealthy budget act as a warning, allowing families to make necessary spending changes before serious personal and financial consequences develop. Common warning signs of troubled family finances include:
- Using credit cards to pay for everyday expenses
- Using cash advances to pay bills
- Bouncing checks
- Receiving shut-off notices from utility providers
- Juggling bill payments
- Carrying debt on multiple credit cards
- Paying only minimum payments
If your budget is exhibiting any of these symptoms, it may be time to seek out the credit counselling services of a trustee.
Credit counseling services can include:
- How to reduce credit card debt
- How to manage credit
- Calculating your debt to income ratio
- Budgeting Help
- An examination of how you got into financial difficulty
It’s important to know if you ultimately file for bankruptcy or a consumer proposal, two mandatory credit counselling sessions are required by law. Why not try to avoid bankruptcy while fulfilling the legal requirements at the same time?
A trustee in your area will provide you with the counselling you need. If you determine that counselling is not enough, your trustee can help you prepare the paperwork necessary for a consumer proposal or bankruptcy filing.