Can Credit Counselling Solve Debt Problems?
The signs that you need professional bankruptcy Nanaimo guidance can be a combination of the following:
- Borrowing from friends or payday loans to get from paycheck to paycheck
- Paying the minimum amounts on your credit card – in effect paying only the interest on the credit card debt you have accumulated
- Accumulating notices from creditors
- Utilities being cut off due to past due bills
In situations like this, you may be find yourself doing an online search for counselling. After all, doing a search from your phone or computer is far from the embarrassment of asking a friend or colleague for advice. However, that online search may lead to debt counselling sites that, while initially helpful, will not help you with creditors in the long run.
You may even find non-profit organizations that seem unbiased and independent. Again, they are a reasonable first step, but in the end, they will only offer credit counselling and not much else. While a credit counselling service may give you viable options, they are not empowered to give you protection from creditors. In fact, some credit counsellors do not give you the entire range of options that may be available to you.
In Canada, the best (if not the only) path to managing your debt would be to go to a Licensed Insolvency Trustee (LIT). LITs, as their name implies, are licensed by the Canadian government. As such, they are regulated in what they can do, offer, and charge. Contrast this with a debt counselling service that charges unregulated fees, is unmonitored by the government, and do not have the ability to protect you from creditors. They also assume that you have the capacity to pay back your debt in its entirety. But this is not always the case, and a service that cannot negotiate a binding debt settlement is not very useful in the end.
Whether your debt problem is personal or related to your business, Licensed Insolvency Trustees are mandated to pursue, together with you, the full array of options that will help you get out of debt. These can include:
- Restructuring your business
- Declaring bankruptcy
- Helping protect you from creditors
- Binding creditors to debt settlement agreements
- Giving you a roadmap towards financial stability
Too often, accumulated debt is the result of bad spending habits or poor money and asset management. Acquiring the service of a Licensed Insolvency bankruptcy Trustee in Nanaimo is a great first step in establishing the financial freedom that will give you peaceful nights of sleep.