Consider Credit Counseling Over Bankruptcy

By Author: Bankruptcy Canada
Total Articles: 4
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People file for a bankruptcy to get rid of the debt burden and also to start afresh. The reasons cited for bankruptcy are weak job market, increase in divorces and expensive medical care. Once the filing process begins collection calls and wage garnishments stops immediately.

You're not the only one with a debt problem, there are millions of people going through this phase. Bankruptcy is not necessarily your only option. Restructure debt and be a step closer to becoming debt free. Credit Counseling services in Canada help you in getting a wider perspective on how to avoid debt problems in the future. This is a free service for all those individuals in financial distress.

Credit councellors are highly qualified and experts in finding debt solutions. They structure a path that makes it easier to make payments and provides relief from interest costs. For this they will first need to assess your situation. After analyzing your financial position, councellors will help you to prepare a budget. A budget is mandatory so that you have an idea on where majority of cash is being spent. This href="http://www.bankruptcy-canada.ca/credit-counselling">credit help in Canada ...
... help you consider the alternatives that are beneficial in the long run.

A debt management plan puts you in control of your finances with a monthly payment plan. This is a relatively simple process. You have to work with your creditors to reduce the amount you owe them. This way, you can get rid of the debt slowly and steadily every month that too at a reduced interest rate. The agency receives these payments and will distribute it to your creditors. Councellors teach you how to rebuild your credit, manage budget and to live debt free.

If all this doesn't sound pleasing enough, and you have only bankruptcy in mind, then remember this process is not as simple as it seems. There are many costs that have to be incurred like administrative costs, mailing costs and also other government set fees. You might lose all of your assets and possessions, except for the assets exempted in your area. This will be a permanent part that you cannot take back or change. This remains in your credit report for years. This should be considered as your last alternative as it affects your credit scoring and borrowing gets difficult.

So consider the pros and cons before you decide on anything. Don't ever make a hasty decision as this decision will affect you in the long run. Consider the advice of credit councellors to know which method is in your best interest.

Bankruptcy Canada provides you with all relevant information on bankruptcy and debt management plans. With
credit counseling services in Canada you get an expert's opinion on how to manage your finances. They also tell you the best to pay off your debt.