Credit counselling and help with budgeting can be extremely important for anyone dealing with money problems.
Welker & Associates Inc. provides two credit counselling sessions to everyone filing personal bankruptcy or making a consumer proposal to help with the rebuilding process.
Be wary of fraudulent credit counsellors.
There are many credit counselling companies that promise to help you deal with your personal debt problems. Although some credit counselling companies are legitimate there are many fraudulent credit counselors who charge high fees, provide little or no service and warn against discussing your money problems with a licensed trustee in bankruptcy. These credit counselors claim to have your best interest at heart and promise to represent you in negotiations with your creditors.
The reality is that a credit counselor has no greater ability to negotiate with your creditors than you do. The main issues with the credit counselling industry are that it is unregulated and anyone can claim to be a credit counselor.
How to spot a fraudulent credit counselor:
- Make unbelievable debt settlement promises
- Ask for fees upfront
- Collect payments without providing immediate results
- Advise against reviewing your situation with a licensed trustee in bankruptcy
- Charge you for referral to a “Court Officer” or “Trustee”
How to spot a legitimate credit counselor:
- Not-for profit united way sponsored agencies
- Never charge fees upfront
- Accredited by the Ontario Association of Credit Counselling Services (OACCS)
- Recommend reviewing your situation with a licensed trustee in bankruptcy
- No cost referral to meet with a licensed trustee in bankruptcy
Credit counselors CAN help you by:
- providing budgeting and money management advice
- filing a debt management plan
- helping you communicate with your creditors
Credit counselors CANNOT help you to:
- file a consumer proposal
- deal with government debts
- compromise the total amount that you owe
- stop creditors from garnisheeing your wages
Welker & Associates provides free initial consultations. Before you sign anything with a credit counselor you should understand all of your options and review your situation with a licensed trustee in bankruptcy.
