In today's Canadian financial market there is little room for lending institutions to help Canadian's when they are in financial difficulties. Credit Counselling is a form of debt consolidation that can help almost all Canadian's that do not qualify for loans through their financial institution.

Simply stated credit counselling is a repayment proposal. It combines all of your unsecured debt into one monthly payment which is based on your ability to pay. Credit Counsellors will approach your creditors and work out a monthly repayment term that can extend up to 5 years. You make one monthly payment to your credit counselling organization and they in turn will distribute those funds to your creditors.

What are the benefits of dealing with a credit counsellor

- One single monthly payment
- Lower interest rates
- Collection activity stops
- Avoid bankruptcy

Of course there are many other benefits to using credit counsellors for debt consolidation. To find out more contact one of our sponsored companies.

Will it affect my credit?

Unfortunately yes, any kind of debt consolidation will affect your credit rating. Your accounts will be listed as an R7 in the credit bureau and will remain on there for three years from the date of final payment. This could actually be a benefit to you depending on your situation. If your accounts are in collections they are listed as an R9. R9 is the worst credit rating you can receive in the credit bureau. undergoing credit counselling, in this case, will help you repair your credit and recover faster than if you paid it out on your own.