Credit counsellors claim they are able to help you deal with your debts. The truth is, credit counsellors have no greater ability to negotiate with your creditors than you do. Therefore, I guess anyone can be a credit counsellor. The credit counselling industry in Canada is unregulated, and as a result, you don’t have to have any special designation or degree to be a credit counsellor. In fact, you don’t even have to have good credit. Most importantly, they can’t use the Bankruptcy and Insolvency Act or any other legislation to help solve your money problems.
They often advertise that there are new government programs to help settle your debts. The truth is, there are no new government programs. The only government programs have been around for a while and are legislated. Those programs can only be administered through a licensed trustee in bankruptcy.
Credit counsellors are classic middle-men. They usually end up charging clients an extra fee, and then set up a meeting for them with a trustee. So why don’t you come to a trustee first? You can meet with a trustee at Welker and Associates for free and we won’t charge you any money up front.
Which leads to the question, what can a credit counsellor do to help solve your personal debt problems?
The answer is simple, not much.
If you’re in debt and looking for answers, contact us today for a free, no-obligation consultation. We’re here to help.