Struggling with debt is a problem that many people face on a daily basis. It can be difficult to picture a day where you are debt free and all of your financial stress is gone. However, there are many options and steps that you can take to move towards a debt free life. For some, removing debt can be as simple as giving a strict family budget, using only cash for all purchases, or bringing lunch to work instead of buying it every day.
On the other hand, those who find themselves drowning in debt, some more serious measures are recommended. Seeking credit counselling is a great way to get ahead of your debt and create a structured payment plan.
If you are considering receiving credit counselling, here are a few things that you should know.
1. What credit counselling is and what it can do for you
The goal of credit counselling is to help lessen and eventually remove the burden of your debt. While working with a counsellor, you will create a structured repayment plan and budget. During this time, the counsellor will educate you on how to handle debt, living within your means, and how to create a healthy financial future.
Credit counselling can help you create a debt free life, move you away from bankruptcy, and stabilize your financial future. Taking the step and speaking with a credit counsellor will change your financial life for the better and help you move away from a life of debt.
2. Credit counselling will not add on to your debt
There are many non-profit credit counselling agencies that are available to help you. Receiving advice does not have to be costly. The reason to seek counselling is to reduce your stress, by receiving help from a non-profit credit agency, you can focus on debt repayment rather than adding on another bill.
There are many agencies that do charge a fee as they offer more services than verbal advice. If you do choose to invest in a paid agency, be wary of writing a cheque before they ask for any details about your current situation. You want to fully understand what is it that the credit counselling agency will do for you, and how they will help reduce your debt before you invest in them.
3. Patience is key
Credit counselling can help you speed up the debt repayment process because it helps you create fast-tracked payment plans and encourages reduced spending. However, regardless of if you invest in counselling or if you tackle your debt alone, it takes time. You must be committed to repaying your debt and changing your lifestyle for at least three to five years. The only way to speed up this process is by filing for bankruptcy, and that should be an absolute last option in an extreme circumstance.
This long-term commitment comes with responsibilities that cannot be avoided. During this repayment time, you must commit to on time payments. Gaining more interest from late-payments will drastically increase your debt and add more time until you are debt free. You will have to reduce your spending which may cause a big change to your lifestyle. Simple things such as eating at home, not shopping for new clothes weekly, or taking transit instead of paying for gas, can really help your repayment plan.
Credit counselling can help you realise the changes that need to be made in order to speed up the repayment process. Counsellors can create a budget and repayment schedule that is right for your situation so you can live a debt free life.