Credit Counselling: How It Works and When to Seek Help
Credit counselling — including the non-profit services we provide at the Credit Counselling Society (CCS) — work for anyone looking for a fresh start with their finances. If credit card debt is piling up, payments feel never-ending, or budgeting has become stressful, you’re not alone. Whether you have lofty goals or simply want guidance creating a realistic budget to better manage your day-to-day expenses, our award-winning debt management and credit counselling services can help.
It’s best to seek help when you start thinking about needing someone objective to talk to. Through our friendly, professional consumer credit counselling and non-profit debt help, a licensed and accredited credit counsellor will connect with you, review your financial situation, answer any questions you might have, and help you build a personalized debt management plan that truly fits your life. With the right support, financial stability is within reach, and your confidence and well-being can grow stronger one step at a time.
What is Credit Counselling?
Credit counselling at CCS is a free, confidential service where a trained credit counsellor helps you examine your income, expenses, debts, assets, and goals, and then offers guidance to help you improve your financial situation. Some of your counsellor’s suggestions could involve budgeting support so that you can manage your money better. If you have debt, your counsellor will outline options for debt repayment or provide referrals for alternative debt relief solutions. If you have questions about credit, your credit counsellor can answer those and explain how you could improve your credit if you have goals for future borrowing. CCS is a judgment-free zone, and no one will know you have spoken with a credit counsellor unless you tell them.
What is a Credit Counsellor?
A credit counsellor, sometimes also called a debt counsellor, is a trained professional who reviews your financial situation with you and helps you understand your options for managing money and reducing debt. At CCS, credit counsellors are licensed and accredited to the highest standards available in Canada. They offer confidential guidance and provide practical support such as budgeting help, debt repayment strategies, and referrals to appropriate resources when needed. Your credit counsellor’s role is to give you clear, unbiased information so you can make informed decisions and take steps toward better financial health.
How Credit Counselling Works at the Credit Counselling Society
Credit counselling at CCS is a free, confidential service offered through appointments in person, via virtual channels, or by phone, where an accredited financial counsellor reviews your income, expenses, debts, and goals to help you understand your options and make informed decisions about your situation. Your credit counsellor will answer your questions, and often provide enough guidance in a single session that no further help is required — and that’s perfectly fine with us. If you choose to continue working with CCS, including through a Debt Management Program, you’ll receive ongoing support from your credit counsellor and our experienced team any time you need to review your budget, adjust to life changes, or plan for unexpected costs. This support continues even after you become debt-free because our goal is to help you achieve lasting financial well-being by rebuilding your credit, maintaining a balanced budget, and confidently planning for your future.
Step 1: Free, Confidential Consultation
Contacting CCS for help with your consumer debts starts with a free, confidential, no-obligation appointment. A friendly “Client Care” person will answer your call and either connect you right away with a credit counsellor, if one is available (as they often are), or schedule an appointment at a time and in a way that suits your schedule. What happens after you meet with our non-profit credit counsellor will depend entirely on you – no pressure, no high-stress sales pitch. If it sounds too good to be true, it’s not. We’re legit – check out our reviews and accreditations so that you can decide for yourself if our non-profit credit counselling services are right for you.
Step 2: Review of Your Financial Situation
Meeting with your credit counsellor is like having a conversation with a super knowledgeable, trustworthy friend who can give you honest, reliable, unbiased advice about what you should do about your situation. Whether you need to figure out what to do about your credit card debt and other bills, build a realistic household budget, or walk through possible debt repayment scenarios to figure out your best strategy, we’ve got you. And we’re happy to help.
Step 3: Your Personalized Debt Plan
The goal behind going through your financial situation is so that your credit counsellor can get a better understanding of what’s all at stake for you. Maybe you have assets that could be in jeopardy if you choose one debt relief option over another – the counsellor needs to know about your assets, liabilities, income, expenses, and goals. With a better understanding of your budget, your counsellor will give it to you straight and explain your options.
For instance, with a budget and some answers, you might have what you need to get a debt consolidation loan from your bank or credit union, or refinance your mortgage to take care of your consumer debt. If you have a lump sum of money or may have in the near future, a debt settlement might be possible. CCS can also offer a structured debt solution called a Debt Management Program (DMP). Under this program, your unsecured debts are pooled into a single monthly payment that fits your budget. CCS arranges with your creditors to reduce or eliminate interest and fees, making your debts more manageable and helping you aim to become debt free within a reasonable timeframe (usually less than 5 years). Sure, 5 years might sound like a lot, but it takes time to get out of debt. Without getting carried away, you still need to be able to live your life while you pay off or deal with what you owe.
Your credit counsellor shows you how to keep your budget reasonable, which helps if you decide to see a Licensed Insolvency Trustee (LIT) for a consumer proposal or to file bankruptcy. If you’re interested in those debt relief options, for consumers who came to us and then chose insolvency, over 80% think that coming to CCS first is the best idea. They report feeling better prepared for the appointment with the LIT, and they appreciate the objective review of the pros and cons of all their options. In short, you and your credit counsellor will create a personalized plan to deal with your debts that suits your lifestyle.
Step 4: Ongoing Support Until You’re Debt-Free
But wait – just having a plan won’t help you become debt-free. Ongoing support throughout the whole process, whatever that might be for you, will help you live out your plan successfully. CCS will continue to provide confidential support with ongoing guidance, creditor negotiations if you hit a bump in the road, and financial education resources – all aimed at helping you regain control of your money and debt as you work toward long-term financial stability.
Find Out Exactly How We Can Help
by Answering 4 Simple Questions
Not sure where to start in finding help for your specific financial situation? Answer these 4 easy multiple-choice questions to get pointed in the right direction. All you have to do is click the boxes that apply to you and then the green button when you’re done.
What Happens When You Contact CCS?
Click on the left diagram to see an overview of what happens when you contact us for help. It all starts with a chat on the phone, online, or by email. After letting us know what you need, we’ll either help you on the spot or, if your situation requires more than a quick answer, we’ll get you an appointment with one of our professionally trained credit counsellors.
You can meet our credit counsellors in person or over the phone and they will review your financial situation with you, help you create a realistic budget, and then explore all your available options. Once you know your options, you can choose your next steps.
Benefits of Credit Counselling
You might wonder if the benefits of credit counselling would work for you. To answer this question, here’s a list of the common benefits consumers experience if they choose to contact CCS for their credit and debt counselling needs.
- A free, confidential, and non-judgmental look at your personal financial situation with a person who keeps what you share private and treats your situation with respect.
- Objective, unbiased advice. CCS is a non-profit organization that does not pay its staff a commission. This means that the guidance you receive isn’t motivated by selling you a particular debt solution.
- Help gaining insight into your full financial picture. Counsellors review your income, expenses, debts, and goals to provide a clear, overall view of where you stand financially.
- Help gaining insight into your full financial picture. Counsellors review your income, expenses, debts, and goals to provide a clear, overall view of where you stand financially.
- Less stress and more peace of mind. In fact, over 60% of the people we counsel say they slept better at night after speaking with a credit counsellor for the first time.
- Access to debt repayment solutions, when needed, that most people don’t know exist.
- Reduced or eliminated interest charges going forward on debts being repaid through the Society’s non-profit debt relief program.
- Support with money management and budgeting. Beyond immediate debt issues, CCS provides help creating realistic budgets and managing money more effectively, which is an important step toward long-term financial well-being.
- A realistic action plan based on your specific circumstances. We don’t believe in cookie-cutter solutions where one size fits all. We help each individual or couple put together an action plan based on their unique situation to help them move forward and resolve the issues they’re facing as quickly as possible. About 50% of the time, this will be a solution that our clients can implement on their own, around 20% of the time it will be one of the solutions we offer, and the rest of the time we end up referring clients to another professional who can provide more specialized assistance.
- Financial education and resources. CCS offers workshops, webinars, and educational materials to help you learn about credit, debt, budgeting, and making smart financial choices.
- Long-term support and guidance. Whether you only need one session or want ongoing help through a debt repayment program, CCS remains available and supportive even after you become debt free.
- Credit rebuilding help for those who repaid or settled their debts through CCS.
Is Credit Counselling Right for You?
Credit counselling might be right for you if you’re looking for clear, personalized guidance to help you regain control of your finances and get a better understanding of your debt management options. Things don’t need to feel stressful; you may just want to be more in control of your money. It’s a good fit if you’re tired of juggling bills, your credit card debt feels like it’s going nowhere, or you’re unsure which financial advice online actually applies to your situation. And if you’re receiving collection calls or are tempted to take out a payday loan to cover a bill, credit counselling at a non-profit agency and debt management support is definitely right for you.
Consumer credit counselling also helps if you want someone neutral to review your budget, point out blind spots you may have missed, or explain your options in plain language. Even if you’re not in crisis, credit counselling can give you a financial check-up, help you set goals, and show you how to build habits that keep your money working for you.
Frequently Asked Questions (FAQ)
No one sets out to get into debt, so when it happens, and someone finds out about non-profit credit counselling services in Canada, they frequently have questions about how it works. Clients often tell us that we’re one of Canada’s best kept secrets, but we wish that weren’t true! Helping consumers from all walks of life with their money and debt shouldn’t be a secret. (add a 97-98% graphic beside this part)
Here are some of the most common FAQs about credit counselling we hear from people who contact the Credit Counselling Society for help with their debts and money.
Is credit counselling free in Canada?
Yes, credit counselling at the Credit Counselling Society and other non-profit organizations across Canada is a free service. We believe that consumers should have access to the information they need to confidently make informed decisions about their finances.
Will credit counselling affect my credit score?
No, credit counselling will not affect your credit score. An appointment with a credit counsellor at CCS is a confidential, ‘question and answer’ style conversation. Sharing openly with your counsellor allows them to provide you with the detailed information you need to make decisions about your situation.
What is the difference between credit counselling and debt consolidation?
Credit counselling is your conversation with the credit counsellor. Debt consolidation could be an outcome of your discussion, if consolidating either your debts or your payments is right for your situation. There are different types of debt consolidation programs, and your credit counsellor will explain those to you in detail during your conversation.
How long does credit counselling take?
At CCS, the initial appointment takes about 45 minutes. If you choose to enter into a non-profit debt repayment program at CCS, repaying what you owe usually takes about 3-4 years.
Who qualifies for credit counselling?
Everyone who wants a better understanding of their money or what to do about debt qualifies for credit counselling, and speaking with a professional consumer credit counsellor at CCS is free. You simply need to schedule the appointment yourself, but if you would like to have a support person with you during your conversation with your credit counsellor, that’s not a problem at all. If your appointment is over the phone or online, for confidentiality reasons, just make sure your credit counsellor is aware that you have someone with you.
What happens in credit counselling?
During your credit counselling appointment at CCS, the counsellor will thoroughly review your situation with you – your income, expenses, debts, assets, and goals. Then, depending on your circumstances, the credit counsellor will outline options for you to manage your debt or money more effectively. One of those options could be a Debt Management Program (DMP) through the Society. There’s no pressure to make a decision during your initial appointment. For some clients, the initial appointment is all they need. For others, they may need to do some homework or think about their options once they get home.
Will credit counselling work even if I have joint debt?
Joint debts are tricky because they aren’t a 50/50 responsibility; each person is, in fact, 100% responsible for what is owed. This means that if one person chooses not to make payments, the other person must assume full responsibility. So the answer to this question is a cautious yes – credit counselling could work for you if you have joint debts, for example, with a spouse, partner, or adult child.
Speaking with one of our credit counsellors without your co-borrower present is not a problem. The counsellor will still ask you questions to thoroughly understand your situation and answer any questions you may have, too. They will also explain how any decisions you make will affect your joint borrower. If your relationship with your co-borrower is difficult, but they are willing to cooperate in speaking with your credit counsellor, separate appointments could be arranged. Then, going forward, if a Debt Management Program (DMP) at CCS is the right option for you – and the two of you agree to enter into a DMP – making separate payments each month is possible as well.
Getting stress relief all starts with a chat on the phone, online, or by email. After letting us know what you need, we’ll either help you on the spot or, if your situation requires more than a quick answer, we’ll get you an appointment with one of our professionally trained non-profit credit counsellors.
Your Personal Information is Safe & Confidential
While we do need to learn about your situation to better help you, everything we discuss is confidential and will be kept between you and your counsellor. We will not share any information outside of our organization unless you give us explicit permission and instructions to do so. Rest assured that talking to us will not affect your credit rating or anything else because your creditors won’t even know we’ve met unless you tell them.
What People Are Saying About Us
We take great pride in the fact that 98% of our clients would recommend us to others. That’s why our largest source of referrals is from people we’ve previously helped. Here’s what some of them have to say:
Thank you doesn’t seem to be enough for helping me change my life and my future. Your patience and understanding was so very helpful and appreciated. I know that I am on the right track.
It is finally over! You made the process a lot easier. I am relieved that my mother and I won’t be homeless. Now that this heavy weight has been lifted I can move on with the rest of my life.
I am extremely appreciative of your help and vast knowledge for organizing matters that I could not accomplish on my own. Thank you for assisting me in my goal of a debt free future.
Accreditations
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Directly from our clients, read and hear about their experiences with CCS.
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