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Credit counselling as an effective debt solution

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"SOS Dettes is a non-profit credit counselling agency. Visit http://www.sosdettes.ca/ to set up an appointment with a debt counsellor to get back on the right track financially. They will help you find the solution that's right for you.
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Credit counselling as an effective debt solution

  1. 1. Credit Counselling As an Effective Debt Solution
  2. 2. IntroductionThe growing number of debt solution companies in the modern worldseems to indicate the state of the general population’s financial health.Basically, if no one were having debt troubles, new debt solution outfitswouldn’t even be necessary.However, financial health is suffering in all different areas of society,and help is needed. Since bankruptcy is the ‘solution’ everyone trieshard to avoid, various other strategies and methods are used to try andget debt paid down and credit scores back in order. Credit counsellingis one of the techniques that people are using.
  3. 3. What Is Credit Counselling?Credit counselling is a discipline that is designed to help people in debtfind the most logical solution for their debt situation. The creditcounsellor will sit down with you and share her wealth of knowledgeabout finances, credit, and debt solution. She will come up with adetailed plan that fits your budget and works for your creditors, with thegoal being a debt-free existence sometime in the future.
  4. 4. What Is Credit Counselling?In most cases, the credit counselling agency will collect one paymentfrom you each month and disburse it to all of the creditors that youmust make payments to. In some ways, credit counselling is amodified version of other techniques, but it’s one that seems to workwell for many people who are struggling with debt. Some agencieseven develop their own programs to offer clients, so be sure to askwhen you first approach a credit counselling office.
  5. 5. How Does It Benefit Me?The most basic way that credit counselling benefits you is that itcreates a solution to your debt troubles and helps organize yourfinancial world. This means you will finally have a concrete plan thatwill result in you being debt-free, and that head-spinning feeling ofnever having anything organized will be gone.Also, the stress of having multiple creditors contact you and maybeeven threaten you each month, will be over. In some cases, debtorsare contacted several times per week when they owe money. Thecredit counselling process will get the creditors off your back and easeyour stress levels.
  6. 6. Choosing a CreditCounselling Agency Even though you are the one who is financial trouble, it’s important to remember that any credit counselling office you stroll into will be working for you. It’s easy to be intimidated when you’re in debt, but keep in mind that you’re in charge as you move through the process.
  7. 7. Choosing a Credit Counselling AgencyWhen you have a first consultation, ask all the questions that come intoyour mind. Make sure this agency has whatever licenses orcertifications are necessary for your area, and then ask questions like:•Do you have experience with cases like mine?•Do you get a bonus for signing me up? (If yes, go somewhere else)•What kind of fees do you charge?•How does your process work?•Is my privacy taken into account?•Where is my money held?
  8. 8. Choosing a Credit Counselling AgencyYou can throw in any additional questions that come to mind, so youhave the most thorough view and understanding possible.Make sure that the contract you sign details all of the fees you’ll pay,gives an estimated payment time and explains how any disputes will beresolved. The length that it takes you to be out of debt will varydepending on your situation and the plan that’s been set out, so it’scrucial that it’s included in the contract.
  9. 9. Tips to Avoid Bad CreditIn most cases, creditcounselling will have you backon your feet in a reasonableamount of time. Of course, thegoal of most people should beto avoid getting into difficulty inthe first place. Just becausecredit counselling worksdoesn’t mean it is something tostrive for.
  10. 10. Tips to Avoid Bad CreditIn the future, remember these tips to stay clear of credit problems:•Don’t take out credit unless you really need it. For most people, having several creditcards, lines of credit or loans active is completely unnecessary and will only lead toproblems.•Make your credit payments before the due date every single month. In some cases, youmay be afforded one or two grace months per year, but for most forms of credit, pay it ontime. Missing payments will reflect on your credit score.•Pay more than the minimum for debts that have a minimum monthly payment. Payingonly the minimum will keep you paying interest for many, many years.•Don’t be afraid of credit, just use it wisely and learn from any mistakes you’ve madewhen you get it in the future.
  11. 11. AdviceConsulting a debt solution company is the right solution for manycases. When facing financial difficulties, a confidential and professionaldebt solution service can be the best way to grant you financialindependence.SOS Dettes is a non-profit credit counselling agency. Visithttp://www.sosdettes.ca/ to set up an appointment with a debtcounsellor to get back on the right track financially. They will help youfind the solution thats right for you.

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