credit counseling posts

You might be surprised by this but people from virtually every walk of life have been known to get credit counseling help.

It seems everyone out there is working to rack their debt up to record levels lately. With that development, we're also starting to see a boom in the number of debt settlement companies hanging out a shingle in an effort to attract new customers.

Those working in credit counselor positions say their service is primarily about financial rehabilitation, not the quick fix being promoted by a lot of new debt settlement companies operating in Canada. In reality, the "solutions" promoted by debt settlement organizations, often require you to push your accounts into default before settling. The process isn't a quick one and, arguably, it isn't much of a fix either.

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We all know companies and people the world over are competing for the money in your wallet. Would you believe there's stiff (and growing) competition for your debt too?

Unfortunately you probably shouldn't go running out to jump in with the first company that promises to settle your debt difficulties (were it only so simple!)

Still, if you troll websites like Facebook, if you've ever keyed some debt-related query into Google or if you listen to the radio, you've undoubtedly seen or heard advertising from companies promising relief "if you qualify." (Note: As discussed earlier, any claims that such programs are part of some government-backed initiative are complete balderdash – be careful!)

If the debt-freedom prospect appeals and you are looking at this as one of your options to getting there, one of the first things to know is that there's a difference between companies who negotiate debt settlement deals with your creditors and the more traditional not-for-profit credit counseling organizations.

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So just where does debt settlement fit in the spectrum of solutions for those who find themselves in over their head, financially?

(We've talked about debt settlement before – this is where you hire a third party to negotiate with your creditors on your behalf, in the hopes you'll be able to settle for an amount that's less than you owe.)

In the lineup of options available, outside of the conventional ways people pay off their debts, we have settlement, credit counseling, consumer proposals and bankruptcy. Each has its own set of conditions and repercussions.

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