Debt Counselling Waterloo
Finding a solution that works for you in the long run, and affects your credit as little as possible, will ease your money worries and let you sleep better. There are many debt relief options and considering the advantages as well as the disadvantages of each one is important as you look for ways to consolidate your debts and become debt free. Many people who choose to use bankruptcy trustees get sold on their advice to consider debt counselling as a form of debt relief. However, little to these clients know, this strategy will severely cripple your credit score for up to 7 years! Expert Mortgage wants to hear from you first if you have been given this advice by a trustee in bankruptcy. There are other strategies that will improve your credit, opposed to damaging it with debt counseling in Waterloo. Read on for more information.
What are some disadvantages of a debt counselling program?
There are a number of disadvantages to a Debt counselling program, most notably that it is reflected on your credit report that you are receiving help from a third party to repay your debts. However, repaying your debt is better than struggling to make partial payments, making no payments, or declaring bankruptcy. Here is our list of cons or disadvantages with a debt counselling program:
⦁ Depending on how much you owe, who your creditors are and your income situation, it’s not the right solution for everyone.
⦁ Your creditors must agree with you and your Credit Counsellor that this program makes sense for your situation.
⦁ It is noted on your credit report that you are making payments on a debt management plan, (which is of course better than not being able to repay your debts at all).
⦁ You need to make a payment each month.
⦁ It impacts your credit for up to 7 years.
⦁ Debt counselling companies charge very large fees for this program, but these can be safely avoided by working with a non-profit service.
Debt counselling can damage your credit for up to 7 years. This is not the strategy you want to take when you are trying to get out of debt and get on the path of financial freedom. Consider debt consolidation or refinance instead of damaging your credit with debt counselling in Waterloo. Click here to find our contact information and to fill out our contact form.