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By: Adriana Noton
Currently, many people are finding themselves in difficult financial situations. Often to relieve the financial stress, individuals will turn to loans to help get them through. Unfortunately, adding more responsibility to an already strained financial situation does nothing to eliminate the original financial obligation. Another more sensible way to address financial difficulties is to contact a reputable debt counselling agency.

A counseling agency employs certified and trained individuals to work as counselors. The counselors are well versed in budgeting, consumer credit, and money and financial management. Agencies that are nonprofit are legally obligated to offer counseling and education to their clients. The non profit organization will offer these services free of charge.

It is important to understand that not all consumer counseling services provide free assistance to consumers who are in need. Many of them do not let the consumer know up front that they charge fees. The fees can be quite steep, and there are some agencies that do not always provide much in the way of counseling or education.

Some organizations that do credit counseling frequently make plans for the clients to pay their bills down with a debt management plan. Using a debt management plan, or DMP, the client deposits a specified amount of money with the credit counseling agency every month. The agency then uses the money to make payments to your creditors according to a schedule agreed upon between the creditors and the client.

Many creditors are often more than willing to negotiate a decrease in interest or may even waive other fees, when the consumer is working with a debt management plan. Utilizing the skills of the credit counselor can make dealing with creditors much easier for the consumer. The creditor feels confidant that they will be getting payment on a debt when a consumer works with a consumer credit counseling organization.

Consumers should stay actively involved in the repayment process. It is important for the consumer to make a point to follow up with their bills to be certain that the agency they are working with is in fact carrying out their obligation. Anyone using a DMP should contact their creditors to make certain that they have agreed to the payments. This should be done prior to sending any money to the agency.

When the creditors accept the management plan it is up to the consumer to make payments on time every month. Make sure to read the statement each month to verify that the money is being sent to your creditors as promised. If the client is not able to make a payment they must contact the agency in charge of their DMP immediately. Also contact the agency if it is discovered that the creditors are not receiving payment.

Before deciding on debt counselling, the consumer should attend an appointment to discuss their financial condition. The counselor will assist with developing a personalized plan to help relieve the consumers financial problems and prevent future problems. The counselor should offer follow up appointments to provide further assistance and education.


Started in 1992, we are your trusted credit counselling firm serving the Durham region. With years of experience in debt consolidation and credit counselling, you can be assured that we get results.
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