Recent reports indicate that residents in Prince Edward Island are facing serious financial difficulties. The Office of the Superintendent of Bankruptcy reported that PEI saw an increase of 15.8% in insolvencies between Aug. 2021 and Aug 2022. In fact, PEI had the highest jump out of all the provinces.
With such an increase reducing spending may not be enough for most PEI residents to get out from under their consumer debt burden. Those who are fighting with debt will need to take more drastic steps, including enrolling in a solution such as debt settlement or credit counselling.
Both debt settlement and credit counselling in PEI are viable options for most individuals who feel their consumer debt is out of control. However, each has distinct advantages, and the best one for you will depend on your specific financial situation.
PEI Credit Counselling
There are many different credit counselling programs offered throughout Canada and PEI, but all of them have some basic features in common:
• comprehensive financial education and budgeting advice to help build a workable budget to curb overspending
• assistance with securing a low-interest debt consolidation loan
• negotiation help with creditors to reduce the total average interest rate and negotiate more manageable monthly payments
Should I Choose Credit Counselling in PEI or Debt Settlement?
Although credit counselling can help to consolidate debts, the debt settlement option in PEI is often able to get consumers a total debt reduction to speed up the time needed to get out of debt. This does not automatically make debt settlement a better choice than credit counselling. PEI residents who have a level of indebtedness that is not overly high in relation to their income often find that credit counselling is a better choice. That is because such individuals usually need only a little bit of help with budgeting so that they can draw up a plan to pay off their debt rapidly and with few credit implications or penalties. Individuals who have a high debt-to-credit ratio, however, often find that debt settlement is a better option.
Find Out More Today
If you remain uncertain as to whether credit counselling or debt settlement is a better option for your financial needs, help is available. Fill out the debt relief form to get more information about the various debt relief options that will help solve your debt problems and start you on the path to a sounder financial future.
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