Sunday, March 26, 2017

Debt Counselling in Toronto to Get your Finances Under Control


Debt counselling in Toronto is a form of debt recovery process that combines basic credit education on financial management and debt relief services through a Debt Management Program or DMP. The main objective of this type of debt relief program is to help the creditor gain control of his finances and avoid a consumer proposal or personal bankruptcy.

What to expect in debt counselling

Debt counselling services are usually offered by nonprofit organizations, and is typically the first option for debt relief that is offered to people who are struggling with heavy debt but can still manage to pay their bills.

To help the debtor get out of debt successfully and to  prevent him from going back into debt again, the program utilizes a combination of different procedures, such as budgeting techniques, credit education, money management, debt consolidation loans, and creditor negotiations, among many other strategies.

The entire process can take quite a while to complete, depending on the amount of debt that you owe and the debt counselor’s’ ability to negotiate an agreement with your creditors. Generally, you can expect the following in a debt counselling:

  • Discussions with a qualified financial counsellor on developing your budgeting skills and managing your spending habits
  • Help from a debt counsellor to negotiate with your creditors and get them to lower or eliminate late fees and other negotiable charges that currently form part of your debt load
  • Help from a debt counsellor to negotiate with your creditors and have them agree to stop all collection activities
  • If you need to obtain a debt consolidation loan, a debt counsellor can provide assistance in finding a lender who can offer a low interest rate and a long amortization period which will help lower your average monthly payment amount.
  • Help in developing a  customized debt repayment plan which will allow you make one payment each month to the debt management company, who will take charge of dividing payments and forwarding these to your various creditors.   

Where to find debt counselling help



Talking to a qualified debt professional is the very best way to find out if debt counselling is the right option for you. To protect your rights and best interest,  make sure to only deal with officially recognized or authorized debt professionals with many years of experience. In Canada, these people hold the following designations:

an accredited debt counsellor, usually one who has obtained certification through the Accredited Financial Counsellor of Canada (AFCC)
a Licensed Insolvency Trustee (LIT)
a qualified insolvency counsellor who is licensed by the Office of the Superintendent of Bankruptcy

Each of these qualified professionals are bound by a code of conduct that requires them to explain to you all of your options for debt relief. This means that even if you don’t need to file for bankruptcy, you can talk to a Licensed Insolvency Trustee and get guidance and recommendations on all legal solutions that is best for your financial situation.


Through debt counselling in Toronto many Canadians find out that they can take measured, reasonable steps to help them overcome their debt problems over a period of time. The program can be a successful and very positive experience for qualified consumers as long as steps are taken to find a reliable debt counselor and the debtor is fully committed to the process of getting help, getting out of debt and working on long-term financial security.

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