Our Guide to Credit Counselling

September 7th, 2021
Our Guide to Credit Counselling

Credit counselling is an excellent way for borrowers and debtors to understand their financial difficulties in more detail and discover opportunities to stop collections, reduce interest, save money and become debt-free. These services are offered by both for-profit and non-profit services, making them accessible to people of various income levels.

Licensed Insolvency Trustees (LIT’s) offer free initial consultations and are qualified financial professionals who understand the various challenges debtors face when paying off their loans or are struggling with debt. For this reason, they are highly equipped to perform assessments, develop effective budgeting and to help determine what options are the most suitable to help you become debt-free. They can also function as intermediaries between debtors and creditors, and they help as debt coaches assisting borrowers in managing their money to become debt-free.

The Advantages of receiving Counselling from LIT’s:

If you need help getting out of debt, but you’re not quite sure if you want to file for bankruptcy, file a proposal or file consumer proposal, then you will benefit from credit counselling in London. Consulting an expert will give you insight and wisdom that will assist you in remedying your situation and address the root causes of your debt.

Credit counselling can also give you more perspectives about your scenario, identifying why and how you fell into debt and the techniques you can practice to become debt-free. They will also teach you valuable money management skills that will help you increase your savings, use your credit responsibly, and improve your financial situation. They can even advocate for your behalf to creditors, negotiating settlements or negotiating interest rates for you.

Finding Credit Counselling in London:

To get you started, you’ll need to find a credit counselling service near you. Having a counsellor close by certifies that they’re easy to reach whenever you need them, allowing you to work closely with each other in resolving your situation. Be sure to conduct extensive research on the credit counsellor you want to work with, as they will play a crucial role in helping you pay your debt and building your wealth.

Check their reputation and effectiveness through online reviews from their customers, which are typically reliable ways to determine their brand of service. Ask the counsellor about specialized training certification and experience and steer clear from professionals plagued with unresolved complaints or accusations of misconduct.

Creating a Pan

A Licensed Insolvency Trustee (LIT)  can develop a plan for you to resolve your debt issues. The plan will consolidate your debts into an affordable monthly payment through them, as they will facilitate the various options and agreements by involving and communicating with your creditors. Your LIT will negotiate with creditors to try to resolve your insolvency issues and resolve any ongoing issues. Often, the LIT can stop interest and reduce or eliminate the balance owing as well as provide an extension on payment dates to help you pay off your debt once and for all.

However, it’s important to note that creditors don’t always agree to informal arrangements and you may need to choose a legally binding option under the Bankruptcy and Insolvency Act. Some of the issues with informal arrangements is that creditors are not bound to participate and can withdraw from it at any time, which means they are not obliged to honour it. Lastly, a debt management plan does not prevent collections or legal actions against you, where as a consumer proposal, proposal and bankruptcy would stop those actions automatically.


If you’re not sure that you want to file for bankruptcy or file a consumer proposal to get out of debt, working with a Licensed Insolvency Trustee and their staff to help assess your situation and review options is a great start. They have the expertise, knowledge, and skills to advocate for you and find other ways to help you stay out of debt for good. Having them at your side will put you on the path toward becoming debt-free. You might just need a little bit of help from a professional who can assess your situation accurately and listen to what goals you have to create a solution. Paul J. Pickering and Associates Limited offers bankruptcies, proposals, consumer proposals and credit counselling in London and the surrounding area to help debtors settle their debt and improve their financial situation. We make a fresh start possible! Contact us today to get started on life without debt!