Can a credit counsellor help eliminate my debt?

Tuesday, May 5, 2020 - 13:39

Consumer Proposals, Bankruptcy

When peole come into my office, they often times ask what the difference is between a credit counsellor and a licensed insolvency trustee. Well, the difference is that credit counsellors don't have any more power than you do when it comes to your debt, while we do. 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. 

On the other hand, a licensed insolvency trustee CAN help you deal with your personal debt by helping you gain control of your financial situation, get a fresh start and rebuild your credit. Licensed insolvency trustees are able to provide the following financial support services to help you achieve your goals:

  • Consumer Proposals
  • Bankruptcy

The first step on your road to financial recovery is to book a free, confidential, no obligation, initial consultation for a review of your situation by one of our licensed insolvency trustees. 

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