QUESTIONS & ANSWERS

Am I eligible for your service?

YES , anyone who would like non biased, confidential advice on money or debt management can come see us. Our clients come from all walks of life.

My creditors are calling me demanding money I do not have, can you help?

Most creditors will give you some grace once they hear you have an appointment with us. Creditors are very supportive of Credit Counselling Services and are very cooperative with us when attempting to resolve clients problems. Once you see a counsellor they will create a realistic budget with you, assess your current financial situation and then will provide you with several options to help you resolve your problems with your creditors.

I can not make the required payments to my creditors, how can you help me?

A counsellor will discuss solutions with you including a debt management program, direct negotiation with creditors, and money management/budget counselling.

With a DEBT MANAGEMENT PROGRAM we will first work out a realistic budget with you. Then we will ask your creditors to reduce your monthly payments to match your ability to pay (as determined by the new budget). Creditors are still paid in full - it just takes a little longer. In some cases creditors will reduce interest charges to help reduce the repayment time. Our payment plans have a very high acceptance rate because of the strong support of creditors for Credit Counselling Services.

Is it true that with a DEBT MANAGEMENT PROGRAM you will handle all of the payments to my creditors?

Yes, you make the agreed upon monthly payment to us each month, we place the money in a trust account and disburse it to your creditors once a month.

If I pay less money towards my debts through a DEBT MANAGEMENT PROGRAM, how long will it take me to get out of debt?

Debt Management Programs are designed to be completely paid in no longer than four years and can be paid much sooner depending on your ability to pay and size of debt. Many creditors will waive or reduce interest charges and this allows you to get out of debt quicker while actually paying less.

What does it cost ?

There is no charge for you to get professional help in solving your debt or money management troubles through our individual counselling sessions. These services are provided free of charge. If you chose to start a Debt Management Program, you will have a small percentage fee built into your overall monthly debt payment. Payments are based upon a clients ability to pay, and in most cases your overall payment is considerably lower than what was required from creditors. We are a non profit, charitable organization and any fees collected help to offset a portion of our operating costs.

How do you make your money?

We are a non profit, registered charitable organization and a member agency of the United Way. We are funded through the United Way, donations from creditors (banks, finance companies, trust companies, credit unions, and retailers), as well as contributions from clients and public speaking fees.

Who will know I have gone to Credit Counselling ?

Nobody will know you have been here unless you tell them. Our Service is fully confidential. We will not disclose any information to anyone unless you consent in writing for us to do so.

Will a DEBT MANAGEMENT PROGRAM affect my credit rating?

Your creditor may report your accounts as being paid back slowly or may record a negative mark if they drop the interest rate. However a report that you are making an honest and sincere effort to resolve your debt problem is a positive note in your credit file. Creditor reports normally stay on your file for six years after the debt is paid off, however upon successful completion of your Debt Management Program your credit rating will be wiped clean within 2 years as further incentive for you.

What happens to my credit rating if I file for bankruptcy?

A bankruptcy will be on your credit rating for seven years during which time it will be difficult for you to get credit. Although bankruptcy is sometimes a valid option it also has other negative implications such as loss of assets and feelings of failure. Credit Counselling Service may have options that will help you to avoid a bankruptcy and all of its associated problems.