Debt, today, is a part of life. It’s basically unavoidable, and far too many people feel trapped by it.
Consider student debt. Each year in Canada, nearly $600,000 students rely on federal loans and grants to help cover the cost of their tuition. According to Employment and Social Development Canada (ESDC), at the time of leaving school in the 2019-2020 year, the average Canada student loan balance was just under $14,000.
That means that many Canadians leave school to begin their careers while being burdened by debt that may take years or even decades to pay off.
Mortgage loans are also higher than ever. In 2020, the overall Canadian mortgage debt reached nearly $1.63 trillion, according to Statistics Canada. The average mortgage debt in 2019 was $289,900, according to Equifax Canada.
What can Canadians do to help pay off their debts? One excellent resource is credit counselling from certified credit counselors at non-profit credit counseling agencies. Here’s a look at why.
Credit Counselors Work with You to Achieve Financial Freedom
Debt is not only difficult financially, but also difficult personally. If you relate, then you might benefit from credit counselling in Canada.
More specifically, you may wish to seek help if you are:
- Borrowing money
- Using too many credit cards
- Feeling financially trapped
- Increasing your credit limit
- Using cash advances
A credit counsellor will work with you directly to identify and solve your financial problems and help you eventually become free of debt.
Credit Counselors Empower You to Understand Your Financial Situation
If you work with a credit counsellor, the first thing they will do is provide a non-judgmental assessment of your financial situation. They will assess your:
- Debts: interest rates, debt and credit card balances, and minimum payments
- Assets: the value of your home, RRSP/RESP, car, other properties, etc.
- Expenses: monthly cost of necessities like utilities and food
- Income: net pay (even if you have no income)
- Life and goals: your lifestyle, spending habits, and where you hope to be in the future
After a credit counsellor completes their assessment of your financial situation, they will identify your individual financial problems and help you come up with strategies to solve them. They also may work on your behalf to negotiate with your creditors to lower or abolish the interest rate on your combined debt, thereby saving you money over time.
How to Get Help from Credit Counsellors
Credit counsellors share the same ultimate goal as you. They want to lead you on the path toward financial freedom.
To start working with a reputable credit counsellor, all you have to do is contact a non-profit credit counselling agency. Then you should be on your way to living a debt-free and therefore-stress free life in today’s debt-ridden world.
