A time comes in everyone’s life when the need to seek help becomes an option. No one is an island of wisdom; we all have limits as to what we know and how to handle situations. When we talk about credit counselling, it’s all about getting insights into your personal finance or financial situation in order to stay afloat and manage your credit or credit card debts better.

Lots of people may not want to consider credit counselling at first because talking about their finances is a very personal discussion and they don’t want to look vulnerable. However, credit counselling is not an opportunity for credit counsellors to know your financial secret or challenges, but to help you. It’s like going to the hospital to see a Doctor, an ideal Doctor won’t judge you for being sick. They are only concerned about your recovery, that’s how credit counselling works.

What is Credit Counselling 

Credit counselling is a professional service that focuses on helping people who are having difficulties managing their finances. The counsellor will devise a means to help you tackle your debt according to your situation and they also offer financial education services to help you manage your finances better in the future.

Why People Don’t Consider Credit Counselling 

Some think it is expensive

While some may charge you high fees for consultations, you will find those that will charge less or charge nothing for initial consultation. At EmpireOne Credit, we offer a free consultation while we still give you a personalised solution for your financial situation. You can rest assured that your financial situation will improve when you consult with us.

Some think it is only for those overwhelmed with debt 

If you’re overwhelmed with debt, you need counselling, but you don’t have to be overwhelmed before you seek help. When you start to see that you’re struggling with paying your bills, or you are already making late payments on your credit card or other personal loans, you should seek help. If you want to understand how to use credit wisely, you also need credit counselling.

Some think a credit counsellor will control their finances

A credit counsellor can’t and won’t take over your finances. Credit counsellors provide advice and guidance, but they do not take control of your finances. You remain in charge of your financial decisions and authorisations. The role of the counsellor is to educate and assist, not to take over your financial decisions.

What are the Roles of Credit Counselling in Debt Management?

Assessment of Your Financial Situation 

Everyone’s financial situation is not the same. A credit counsellor would need to understand where you are in your finances. How much you owe and to whom, and how much you may be earning, to understand how financially stressed or relaxed you are. Every credit counselling starts with this stage. Without assessing your situation, it won’t be easy to provide tailored help.

Understanding Spending Pattern 

If you’re not someone who uses budgeting as a tool to manage your finances, you will find that you have an irregular and unhealthy spending pattern. Your spending pattern is usually the root cause of debt. It can come from emergencies you need to handle or overspending. When you’re able to understand what your spending pattern looks like, it will help you to prepare ahead for emergencies or plan your spending according to your income.

Personalised Debt Management Plan 

Once you and the credit counsellor have a clear understanding of your financial situation, it’s time to offer guidance on the best debt solution for you. Debt solutions can include consumer proposal, debt consolidation, budgeting, etc.

Avoiding Bankruptcy

Another role credit counselling plays in debt management is to help you avoid bankruptcy. There are other ways to manage your debt and bankruptcy is usually considered as a last resort. It has an adverse effect on your finances, and most people would not want to have it on their records. Why go for bankruptcy when there are better ways? This is what credit counselling can do for you. You may think there is no other way out of your situation, but you can’t conclude until a professional says so.

Financial Education 

Prevention is better than cure. Lack of proper and adequate financial education is the reason why most of us are struggling with our finances. When you have the knowledge to handle your finances, you will make informed decisions and avoid some debt traps like high-interest credit card debts, payday loans, maxing out credit, and other things that can affect your credit score and report. Credit counselling can offer you a good financial education that will work for you going forward.

Get Free Consultation With EmpireOne Credit 

You don’t necessarily have to pay your debt in full. You can actually reduce your debt by up to 80%, and interest will stop immediately. When you consult with our debt experts or credit counsellors at EmpireOne Credit, you get to relate with an empathetic professional who understands what you’re going through and won’t judge you for it. We all have been there. You don’t have to keep going through sleepless nights juggling multiple debts all by yourself. You can call us at (416) 900-2324 to schedule a free consultation with us. Being debt-free feels good!