In a credit counseling program the consumer loses control of their finances. The consumer makes a single monthly payment to a credit counseling agency which in turn disburses these payments to the creditors. These programs can take up to 5 years and rarely is debt reduction resolved. Here, the key benefit is the possible stopping or reduction of the interest. If the consumer misses one payment, they could be dropped from their program. The average credit counseling agency has high client cancellation rates. They are not the best option for everyone.

Many Canadians assume that because an organization is structured as “not-for-profit”, that they are a charity organization, or that they work for free. In fact, credit counseling fees are often included in either the monthly payments, retainer fees or both. These fees can often be overwhelming and simply unsustainable, especially when funds are already scarce.

Debt settlement is found to be the most successful trouble-shooter to a large number of customers and companies as well, given the grim economic scenario obtained today. The consumers who choose Canada Debt Settlements are able to shrink their debt, which allows them to avoid high interest payments and save significantly more money than credit counseling services.

The Financial Consumer Agency of Canada (FCAC) advises Canadians to research a credit counseling service or organization before entering into any agreement. According to the agency, consumers should take note of the different fee structures of for-profit and "not-for-profit" credit counseling, as well as what services are offered for those fees.

Consumers should also be aware that entering into a contract with a Credit Counseling agency will enter an R7 credit rating on their credit report and it will further reflect their enrollment in the program, a notation that will remain on their credit report for at least two to three years.

Banks, other lenders, employers and landlords may view this information on an individual’s credit report.

Often we are faced with towering debts that may appear unconquerable. And often times still, the challenge may be just that. Circumstances for financial hardships are as plentiful as the individuals who face them. It is not always a matter of blame. The need for a fresh start may be overwhelming.

In the search for relief of financial burdens, Canadians have steadfastly been heading to the doors of Trustees In Bankruptcy. And while bankruptcy protection may at times be the best remedy for situations of financial destitution, not all cases of economic hardship may warrant such a drastic resolution. The consequences of such a step must very carefully be reviewed and all other options must be considered. Trustees are aware that they must thoroughly review with the consumer other options prior to initiating the legal work associated with bankruptcy proceedings. It is your responsibility to find a Trustees who is fully compliant to this legislation. There are often misconceptions about the process of bankruptcy. The following is not a misconception: Bankruptcy - This is where assets of an individual or company are liquidated and the proceeds are given to people who are owed money. (Some assets are exempt from liquidation, depending on the province)

The above may seem overly simplistic, but it is the core of bankruptcy proceedings. The effects are numerous and severe. They may range from the inability to obtain ANY recognized forms of credit, to the inability to obtain countless types of employment. Lesser known consequences are the disqualification from being able to sponsor new Canadians as well as not being able to be bonded. All effects of bankruptcy carry with them long-term distress. At times, the remedy may be worse than the illness. Be sure to fully consider all options prior to this decision, as this option too most often comes with a 4-digit service fee. Consider further that bankruptcy proceedings are PUBLIC. Under this resolution, your financial affairs are no longer your private matters. Creditors would prefer to settle their debt, as opposed to having their customer cornered into bankruptcy.

Canadian debt consolidation occurs when combining all debts into one loan with one monthly payment via a bank or other lender. An alternative such as this does NOT decrease one’s total debt or free one from debt altogether. It simply transfers the total balance from unsecured debt to secured debt or another lower-interest loan. Canadian Debt consolidation cannot always help eliminate debt, but when it is paired with our debt settlement service, you may achieve resolution to your financial burdens. As you reduce your debt load by up to 80%, your loan will be wrapped up with a single monthly payment. Canadian debt consolidation does not necessary reduce debt, it merely shifts it.