With Statistics Canada reporting that the national average of individual consumer debt reached $46,577 in Q2 of 2022, many Canadians are clearly having difficulty meeting their budgets and making timely principal and interest payments to all their creditors. Nunavut has not escaped this debt trap. While it is true that the average number of bankruptcy filings is lower for Nunavut’s population than in the rest of Canada, those who do finally file for insolvency in 2021 still had an average of $72,000 of debt according to the Office of the Superintendent of Bankruptcy.
Before your consumer debt gets out of control, you must take hold of your finances. This will involve negotiating with creditors and learning to set and live by a budget. Credit counselling in Nunavut can help you achieve both goals.
Nunavut Credit Counselling: One of Many Options
Canadian law provides residents with several options for solving their debt problems. Bankruptcy is the option of last resort, as it impacts your credit history significantly for years to come. Serious levels of debt can often be solved with debt settlement or a consumer proposal. However, if your debt levels are not out of control and you have a regular income, credit counselling may be your best option.
What Is Credit Counselling?
The most important thing to remember about credit counselling in Nunavut is that it is a comprehensive process that deals both with the disease—high debt levels and interest rates—and its symptoms—inadequate financial planning. Paying off creditors and teaching you how to live comfortably within your means are the two aims of Nunavut credit counselling.
Credit Counselling Nunavut Services
Each credit counselling organization takes a slightly different approach, but most of them have these features in common:
• personal assistance with budgeting and living below your income
• debt consolidation services to lower your interest rates and turn several payments you might forget into one convenient and easy-to-remember monthly payment
• negotiate for lower monthly payments, making your monthly cash-flow more manageable
Is Credit Counselling the Answer for Me?
Credit counselling is effective for many people, but your unique situation will dictate the best option for you. Fill out the online debt relief form for more information on Nunavut debt relief programs.