Credit Counselling Society: Everything You Need To Know

December 30, 2019
Blog
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At Yore Oyster, we strive to help you make wise financial decisions. We're committed to giving you the most relevant, actionable advice anywhere.

The Credit Counselling Society is a non-profit agency that aims to help you out with your finances. If you’ve gotten yourself into overwhelming debt, lowered your credit rating, or simply want to become financially literate, the Credit Counselling Society should be your go-to place for help.

Their services include debt settlements, debt consolidation guidance, credit counselling, and bankruptcy guidance. They’ve been working with Canadians for 23 years now and have helped over 700,000 people so far.

So, What Is Credit Counseling?

Before we get into the real meat of what the Credit Counselling Society is, we’ll go over what credit counseling is as a whole. 

Credit counseling has the singular purpose of getting you out of any financial troubles that you might have gotten yourself into. Yes, it’s that simple. However, when we dig deeper, it gets more detailed, albeit just as simple. 

Why Would Anyone Need Credit Counseling? 

There could be any number of reasons why you might require the services of a credit counseling agency, and some of the most common ones are: 

  • You need advice: if you think you’re not doing too hot with your finances and have no budget in mind, you could be on the downward spiral which leads thousands of people towards bankruptcy every month. A financially educated individual is very likely to pull themselves out of such a sticky mess. By educating yourself, you minimize your chances of bankruptcy in the future.
  • You messed up your credit score: It’s quite common for people to accidentally land themselves in situations that have them see their credit scores reduced. The smartest thing to do is to seek help from a reputable credit counselor. 
  • You’re in debt: this is one of the main reasons why people seek credit counseling. The first thought that comes to mind when debt becomes overbearing is bankruptcy, but credit counselors can show you other pathways that can help you bring your debt to more manageable levels. 

Credit Counselors Can Be Free Too

Just as in the case of the Credit Counselling Society, a lot of credit counseling agencies are free. Some can be for-profit too, but you’re better off staying with agencies that prioritize your well being over making profits. Non-profits will not always be the place to go either, as you may be coerced into making voluntary donations. The best move is generally to consult an agency that is both reputable and non-profit so you can expect the best possible treatment from them. In this sense, the Credit Counselling Society is one of the best options for Canadians.

Introducing the Credit Counselling Society

The Credit Counselling Society has been around for just 23 years, having been established in 1996, but they’ve done some great work since then. They’ve been dedicated to helping Canadians stabilize their financial lives and have been committed to being an exemplary nonprofit organization since their debut.

What Can They Do For You? 

yoreoyster credit counselling society

That’s probably what you want to know most about them. There are plenty of services that the Credit Counselling Society can provide for you, and here’s a short overview of them: 

Credit Counselling And Debt Solutions

If your credit score has dropped, you’ll just need some information and a workshop to get you back on your feet. There are even credit cards out there the purpose of which is to help you get back on your feet. This agency will help you through education and guide you towards a better score. Keep in mind that they won’t be actively participating in the process, but will rather guide you through it. 

Debt, on the other hand, is an issue that plagues millions of lives across the globe, and Canadian people are no exception. The Credit Counselling Society is able to help you form a budget that actually works on a realistic level. You’ll receive the necessary information you need in order to lead the right lifestyle which allows you to pay off your debts. You’ll also learn how to stay out of debt in the future. This means that your time spent with this agency will be invaluable. Your counselor will guide you and help you explore the options you have for getting out of your debt. 

Debt Consolidation

If you’ve gotten yourself into a large amount of debt and are consistently failing to pay your credit card dues, you might want to consider consolidating your debts. This works by getting a new loan to pay off all the old ones. Usually, this new loan has a lower interest rate or lower monthly payments, which will definitely work in your favor. This debt is often due to multiple credit cards; it can make sense to transfer your debt into a new credit card. An example is the BMO Mastercard, which has a great offer for balance transfers. 

The Credit Counselling Society helps you by providing you with professional advice on what your best options are. That, and how you can cope with the situation in a manner that could secure you for the future.  

Debt Settlements

Sometimes, debt can become too much to handle, and most people make a beeline for bankruptcy when that happens. However, another option is available in the form of debt settlement. It includes communicating with your creditors and negotiating with them. The hope is that they’ll allow you to pay off a lesser amount than the debt that you originally owed. This can be difficult to achieve on your own. An agency like the Credit Counselling Society can act as a third party to negotiate between you and your creditors. They’ve had a lot of success in the past. This is because they have the experience to know what sort of claims are legitimate.

Debt settlements aren’t always successful, but they’re a better alternative than bankruptcy at any rate. They also require a fixed amount to be paid to the creditor. This isn’t always a path forward for people already struggling with their finances. If, however, the settlement succeeds, you could see a drop of around 20-80% in the debt that you owe. In case of successful negotiations, you’ll have to pay the Counselling Society a fee for their efforts. Come on, they deserve it!

Bankruptcy

If you’ve already taken the step towards bankruptcy, the Credit Counselling Society will be more than happy to take you under their wing. They’ll help you get your credit score back on track. 

How Does The Credit Counselling Society Work? 

yoreoyster credit counselling society

Credit counseling is completely confidential, which means that a simple visit isn’t going to do anything for your credit score. However, what the Credit Counseling Society offers is a private session in which they’ll answer any questions you have. They will define the options you have in your current situation. They will also help you set a budget for yourself. Following that, you’ll be able to gradually make your way to a financially stable lifestyle. You can expect all your information to stay private and confidential with this agency. Other than that, you’ll receive a warm environment that provides solutions without any judgment. 

Where Does Their Funding Come From? 

70% of the funds that the Credit Counselling Society gets are from creditors. It might not make sense as to why creditors would want to donate money to them at first. However, individuals who’re financially stable and able to pay off their credit cards on time are extremely valuable to credit granters. As such, it would make sense for them to pay an agency that makes sure that people stay out of debt and are able to generate profits for them. Another source of revenue for this agency is the donations they receive from their clients; along with the money generated through debt settlements. 

Why Should You Trust The Credit Counselling Society? 

  • Welltrained counselors: Each counselor on the team has 1,000 hours of professional experience. They’re exactly the sort of people you would want to take care of your financial troubles. They have the personality and the experience to grant you the knowledge and mindset that you need. 
  • The size of your debt doesn’t concern them: It doesn’t matter whether you’re in just a few thousand dollars of debt, or a few hundred thousand; you will receive help at the Credit Counselling Society. They aren’t looking to profit off of your distress but are trying to help you.
  • Their various accreditations: The Better Business Bureau, Credit Counselling Canada, and the Council on Accreditation have accredited this agency. Other than that, the CCS also became an affiliate of the National Foundation for Credit Counselling in 2017.
  • Their scale: They have paid off over $300 million in debt since they started working. They’ve helped over 700,000 Canadians with their finances successfully, and that gives them all the credibility they’ll need.

Testimonials

Clients have shown an overwhelmingly positive amount of satisfaction with the Credit Counselling Society. Their opinions should give you a glimpse of what they’re all about: 

Absolutely great organization! They were very approachable, realistic, and kind in a trying time. Even though it’s been a while now since I’ve finished things up with them, their service is still stellar when I need help with getting copies of old documentation or questions about my report. I can’t recommend them enough. Such a humane, dignified way to handle the stress of financial issues.

Rosie Jones

I read about this program online and connected with them right away. I was very nervous to get started as I was feeling extremely anxious and embarrassed about my financial situation. When I met with my counselor I was immediately put at ease and validated in my situation. I felt completely comfortable talking about money and never once felt judged for where I was financially. It was so easy to get everything sorted out and get started with the program.

The financial workshops they offer are great and every month when I get my summary statements I feel such a sense of relief and accomplishment seeing how much debt has been paid off so far! that relief totally motivated me to stay firm in my budgeting every month and always stay on top of where my finances are. There is ALWAYS a way out of whatever crazy financial station you find yourself in!

Sarah Patterson

If you’d like to know more about this agency, you can always visit their website: