What a Credit Counsellor Actually Does to Help

  • 3 min read

Millions of people have sought out professional guidance at some point during their lives. The whole reason people can make their livings as career counsellors, financial advisors, and golf instructors is because we simply can’t know everything. Granted, the perfect golf swing is hard to attain, but there’s something even more difficult to self-analyze and improve: a personal debt situation. Just look at Canada’s recent debt statistics and you’ll see that a very large number of people could use a healthy dose of that professional guidance.

Experts are there to help us fill in the blanks and expand the limits of our own experience and knowledge. This is why credit counselors are there, and there’s something to be said for the good they can do.

While I’m not saying you’re a definite candidate for debt counseling, I will happily tell you what a credit counsellor does to help those with looming credit card bills and other debt struggles. Take a look!

They put things in perspective.

One of the first steps to success is an honest and objective appraisal of your financial situation. This alone can make a debt counsellor invaluable. Your counsellor will evaluate your income and expenses, how much you owe, interest rates, and other factors that make up your current position. You may find out right away that your solution is as simple as a spending plan, or the counsellor could help you with more detailed strategies.

They help create a budget for your spending.

Debt often arises when someone tries to live beyond their means. It’s incredibly easy with so many credit card offers out there, and your counsellor knows this. They will help you reverse that downward debt spiral by creating a spending plan that reduces your expenses.

They’ll help you pay down your debts.

A counsellor will examine your secured and unsecured debt and help determine an effective way to pay them down without compromising your ability to pay the bills and buy groceries.

They can work with you if debt management is needed.

Many counsellors can create a debt management plan for those who need one. They can negotiate with your creditors, work out arrangements, and possibly reduce or eliminate the additional fees and overage charges that you’ve been paying.

Bear in mind that these debt management plans aren’t recommended for everyone, or every situation; a good credit counsellor will evaluate your case first, and only advise such a measure if it’s really necessary.

There’s no denying that the path to financial freedom and debt relief can be a challenging one. There’s no reason to face it alone; a reputable credit counsellor could be just what you need to make the process actionable and achievable.

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Christopher - BSc, MBA

With over two decades of combined Big 5 Banking and Agency experience, Christopher launched Underbanked® to cut through the noise and complexity of financial information. Christopher has an MBA degree from McMaster University and BSc. from Western University in Canada.