Recent reports indicate that residents in Prince Edward Island are facing serious financial difficulties. In February 2013, CBC News reported that there was an increase in the average consumer debt level per capita in PEI of 9 percent from 2012. Only Alberta and Quebec experienced a greater percentage increase in their residents’ average level of consumer debt. Moreover, although the average debt level of PEI households was less than the Canadian average, there was still cause for concern in that residents of the province had the highest delinquency rate for credit cards in all of Canada.
The evidence is mixed, despite this increase in the province’s average per capita debt level, the average Prince Edward Island household spending also decreased, indicating that residents of the province are beginning to take steps to get their debt under control. However, with such a high level of consumer debt, reducing spending will 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.