Individuals who have been watching Canada’s financial picture closely are no doubt alarmed by the rise in consumer debt in recent years. No province or territory is completely immune, and that includes Newfoundland and Labrador. In fact, consumer debt levels have increased quite rapidly in Newfoundland in the past few years. The Office of the Superintendent of Bankruptcy (OSB) reports that between there was a 54% increase in insolvencies for residents of Newfoundland and Labrador between Aug. 2021 and Aug 2022. A strong indication that residents are finding it harder to make ends meet.
Residents, however, have not been left entirely without recourse when it comes to solving their consumer debt problems. There are several approved ways to settle debts with creditors and save money in Newfoundland and Labrador.
Newfoundland credit counselling is but one way in which provincial residents can get help from creditors and begin paying off their consumer debt. What is credit counselling, and can it help you if you are a resident of Newfoundland? Read on to find out.
Credit Counselling in Newfoundland and Labrador
Unlike other debt relief programs available to residents of Canada, the goal of credit counselling is both to solve one’s current consumer debt problem and put into place safeguards to help a person avoid falling too deeply into debt again. Solid financial education is the overarching goal of credit counselling. Newfoundland residents who are looking for long-term help in establishing a budget and living within their means will benefit from credit counselling.
Each provider offers a different credit counselling program. Nevertheless, most programs hold these features in common:
• A financial counsellor will help you assess the true nature of your liabilities and assets. Armed with this information, the counsellor will help you develop a budget that can meet your needs without feeling too restrictive. This will help keep you from running into financial problems again in the future.
• Credit counsellors will advocate on your behalf to lower your total average interest rate, saving you money over time as you pay off your debt.
• Credit counsellors will work with your creditors to encourage them to accept a lower monthly payment, making your payback schedule easier to manage.
• Credit counselling is often able to consolidate your debts and leave you with one easy-to-remember monthly payment. Unlike debt settlement, this typically does not include lowering the overall amount you owe.
Is Credit Counselling in Newfoundland Right for Me?
Each individual must determine whether or not credit counselling is the best solution for them. If your answer to the following questions is yes, credit counselling may be ideal for your situation. If the answer is no, you may be better off with an alternative debt relief option such as a debt settlement program.
• Are you only now beginning to feel that your debt payments are getting out of hand?
• Are you unable to establish and live by a budget?
• Are you current on your debt payments even though they are squeezing your pocketbook tightly?
What Should I Do Next?
Take advantage of the absolutely free help available to you to get started. Fill out the online debt relief form to learn more about various debt relief options and figure out which one is best for you.