QUESTIONS & ANSWERS
Am I eligible for your service?
YES , anyone who would like non biased,
confidential advice on money or debt management can come see us. Our
clients come from all walks of life.
My creditors are calling me demanding
money I do not have, can you help?
Most creditors will give you some
grace once they hear you have an appointment with us. Creditors are
very supportive of Credit Counselling Services and are very cooperative
with us when attempting to resolve clients problems. Once you see
a counsellor they will create a realistic budget with you, assess
your current financial situation and then will provide you with several
options to help you resolve your problems with your creditors.
I can not make the required payments
to my creditors, how can you help me?
A counsellor will discuss solutions
with you including a debt management program, direct negotiation with
creditors, and money management/budget counselling.
With a DEBT MANAGEMENT PROGRAM we
will first work out a realistic budget with you. Then we will ask
your creditors to reduce your monthly payments to match your ability
to pay (as determined by the new budget). Creditors are still paid
in full - it just takes a little longer. In some cases creditors will
reduce interest charges to help reduce the repayment time. Our payment
plans have a very high acceptance rate because of the strong support
of creditors for Credit Counselling Services.
Is it true that with a DEBT MANAGEMENT
PROGRAM you will handle all of the payments to my creditors?
Yes, you make the agreed upon monthly
payment to us each month, we place the money in a trust account and
disburse it to your creditors once a month.
If I pay less money towards my debts
through a DEBT MANAGEMENT PROGRAM, how long will it take me to get
out of debt?
Debt Management Programs are designed
to be completely paid in no longer than four years and can be paid
much sooner depending on your ability to pay and size of debt. Many
creditors will waive or reduce interest charges and this allows you
to get out of debt quicker while actually paying less.
What does it cost ?
There is no charge for you to get
professional help in solving your debt or money management troubles
through our individual counselling sessions. These services are provided
free of charge. If you chose to start a Debt Management Program, you
will have a small percentage fee built into your overall monthly debt
payment. Payments are based upon a clients ability to pay, and in
most cases your overall payment is considerably lower than what was
required from creditors. We are a non profit, charitable organization
and any fees collected help to offset a portion of our operating costs.
How do you make your money?
We are a non profit, registered charitable
organization and a member agency of the United Way. We are funded
through the United Way, donations from creditors (banks, finance companies,
trust companies, credit unions, and retailers), as well as contributions
from clients and public speaking fees.
Who will know I have gone to Credit
Nobody will know you have been here
unless you tell them. Our Service is fully confidential. We will not
disclose any information to anyone unless you consent in writing for
us to do so.
Will a DEBT MANAGEMENT PROGRAM affect
my credit rating?
Your creditor may report your accounts
as being paid back slowly or may record a negative mark if they drop
the interest rate. However a report that you are making an honest
and sincere effort to resolve your debt problem is a positive note
in your credit file. Creditor reports normally stay on your file for
six years after the debt is paid off, however upon successful completion
of your Debt Management Program your credit rating will be wiped clean
within 2 years as further incentive for you.
What happens to my credit rating
if I file for bankruptcy?
A bankruptcy will be on your credit
rating for seven years during which time it will be difficult for
you to get credit. Although bankruptcy is sometimes a valid option
it also has other negative implications such as loss of assets and
feelings of failure. Credit Counselling Service may have options that
will help you to avoid a bankruptcy and all of its associated problems.