Credit is a nearly inescapable aspect of modern life. From mortgages to car loans to credit cards and much more, loans make large purchases more affordable and enable consumers to buy the things they want or need without having to save for years beforehand. However, even the most scrupulous spenders may find themselves in a situation where their debt is out of their control.
If you are having trouble managing your debt, Alberta credit counselling may be the solution for you.
Consumer Debt in Alberta
For the past several decades, consumer debt throughout Canada has been on the rise. In the past few years, however, consumer debt in Alberta has risen more quickly than other areas of the country. As of August 2012, for example, Global Edmonton reported that the average level of consumer debt in the province was $33,564, representing a decrease from 2011 but still more than $7,000 higher than the national average. Getting control over this debt has been a priority for many families and individuals, which is why so many have looked into credit counselling in Alberta.
Credit Counselling Alberta: What Is It and How Can It Help You?
Depending on your situation, there are many different options in Alberta for dealing with your consumer debt. Those in dire straits may find that filing for bankruptcy is their only option. Others can get out of debt with the help of a consumer proposal. Before choosing these options or any other, however, it is wise to consider the credit counselling process.
The Credit Counselling Process
Credit counselling offers a comprehensive approach to debt management and credit repair. Knowing that many credit problems are caused by consumers’ lack of understanding in dealing with creditors as well as their failure to budget properly, credit counselling works to address both problems. A typical Alberta credit counselling program offers:
• household budgeting advice
• affordable debt repayment plans to get you out of debt and save you money on interest payments
• advocacy with creditors to negotiate repayment plans and lower interest rates
• practical tools for debt management and securing affordable loans in the future
Consumers meet with a credit counsellor to set up a debt repayment program. The counsellor monitors the program, providing guidance along the way.
Do I Need Credit Counselling?
Credit counselling can be incredibly effective if you have a debt problem. Here are some signs that you may need credit counselling in Alberta:
• collections agencies regularly contact you regarding uncollected debts
• you must regularly borrow money from one creditor to pay another
• you are unable to make the minimum monthly payments on your consumer debts
• you are having difficulty securing new loans for purchases such as a home or vehicle
• there is little money leftover at the end of the month after you pay all your debts
Review Your Options
If you suspect that you need credit counselling, the best way to find out is to get in contact with an experienced debt specialist who will explain all of your options. Fill out the Canada debt relief form for more information on the debt relief programs available to you.