Since 1989, the average amount of household debt in Canada has nearly tripled, with some provinces experiencing greater increases than others. Debt servicing ratios are higher in Nova Scotia than most of the rest of the country, and along with the other Atlantic provinces, the growth in consumer debt was nearly double that of the national average year-over-year from 2011–2012. With the average consumer debt in Canada reaching just under $30,000, this is an alarming trend indeed.
Residents who are feeling squeezed by the amount of consumer debt that they are carrying may feel like they have no hope for getting out from under their debt. In fact, there are several possible avenues of help for those who want to pay off their debt and become more financially stable. Consumer credit counselling is one of these options.
Explaining Nova Scotia Consumer Counselling
Credit counsellors work with your creditors to negotiate more manageable payments. It also focuses on long-term financial education. The best candidates for credit counselling services include those who have never really learned to create and live by a budget. Nova Scotia residents who get help from a certified credit counsellor learn how to set a budget that will allow them to live within their means comfortably and help them achieve long-term financial goals such as saving for a mortgage down payment.
Debt Reduction and Credit Counselling in Nova Scotia
There are a variety of ways in which credit counselling can help you get out of debt. Some common approaches to reducing debt levels and the cost to service consumer debt include:
- negotiating with creditors to get reduced interest rates that save you money over the debt amortization period
- working to get creditors to agree to lower the monthly payments, or consolidate your debt into a single, easier-to-manage payment
- helping clients develop a plan in which they pay more than the minimum required payments each month, thereby reducing debt principal and interest more quickly
Credit Counselling vs. Debt Settlement
Although working with creditors to settle debts is an integral part of credit counselling. Nova Scotia consumers should know that credit counsellors do not always have the same expertise in getting debts settled as some professional debt settlement programs. A debt settlement program can often reduce your debt levels more dramatically than many credit counselling plans because of their priorities and expertise in the area as well as personal contacts in the credit industry.
Get Started Today
Debt relief options are designed to help Nova Scotia residents like you. Fill out the debt relief form for more information on Nova Scotia debt relief.
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