A Brief Guide To Credit Counselling In Calgary

Have you ever wondered, "What is debt counseling?" We often hear this question because credit counseling is one of Canada's best kept debt relief secrets. The simple answer is that credit counselling Calgary will help you improve your financial situation. Some people need help budgeting their money, others have credit issues, and many people want help dealing with their debt. Whatever your situation, credit counselors will try to solve your problems and help you move forward. You might be wondering how it all works, so here's an easy-to-understand overview of what you need to know.

What is a credit counsellor?

A credit counselor is the person who provides credit advice; They will help you find solutions to your financial challenges and problems. However, it can get a bit complicated as there are no mandatory education requirements for debt counselling Calgary.

Many professionals who have committed to becoming qualified credit counselors will continue their education through Canada's Accredited Financial Counselor program and become certified after completing 1,000 hours of financial counseling.

Different approaches to credit counseling

There are two general approaches, or types, of credit counseling in Canada and the approach is related to the organization or company providing credit counseling.

Although all credit counselors and / or credit counseling firms and businesses in Canada must be licensed in the province in which they operate, the two types are:

1. Non-Profit Credit Advice (also known as Non-Profit Credit Advice)

2. Profit credit advice

Non-profit credit advice

Canadian nonprofit charitable organizations are where you can get nonprofit credit advice, usually for free or at a very low cost. Qualified faber bankruptcy in Edmonton experts help you with your debts and finances. After reviewing your entire financial situation, they will provide you with information, answer your questions, provide advice, and explain the pros and cons of your available options.

They can give you objective information about all of your workable options as they do not receive any incentives or bonuses based on how you choose to resolve your situation. In fact, to be accredited by Credit Counseling Canada, it is mandatory for an agency to pay only the salary of its credit counselors, without commissions, so that they can remain as objective as possible and give you the clear advice you need. We believe that being accredited is a way to show you that you can trust us when looking for answers and information.

Guide to credit for profit

For-profit debt counselling in Edmonton is offered by many different companies and individuals in Canada. Sometimes "credit counseling" is even advertised as part of another service. Some for-profit credit counseling firms are accountable to a national association of their peers, but most are not. Aside from the licenses that apply to all business activities (e.g. corporate licensing), there is very little accountability or regulation in the for-profit credit advisory industry.

Credit advice provided as part of a for-profit business model has less support from credit card companies, banks, credit unions, and other creditors. This is to the detriment of the customers. If you are having financial difficulties, not only do you need to avoid paying fees that you cannot afford, but you also need the support of your creditors to resolve your problems.

When loan officers work in a for-profit environment, some told us they would be paid more if you signed up for their company's debt repayment program, even though another option would be better for you in the long run. We are discouraged to hear this, so we try to help you understand the differences between non-profit and for-profit credit counselling in Calgary. There is nothing wrong with doing business with a business entity to make money, but you should be aware of the pros and cons and how they affect you before you sign the dotted line. For more info, visit us at Debt Free Alberta today!