Credit counselling is not a good solution for credit problems
Credit "Counselling" Services May Have Hidden Charges and Fees.
CONSIDERING CREDIT COUNSELLING? CONSIDER THIS FIRST
Credit Counselling vs
Bankruptcy or a Consumer Proposal
Mavis owed about $20,000.00 and could not pay. She went to a credit counsellor who sold her a bill of goods. Credit counselling is not a good solution for her credit problems.
She was counseled to consolidate her debts and pay them off over a period of ten years. The reason? Bankruptcy would make her credit rating poor for 6 years and if she paid off her debts, the credit card companies would consider her a 'nice' person.
Here it is, 4 years later and Mavis still is deep in debt and cannot afford Christmas presents or car insurance. She has another 5 years of living like this, thanks to the "counselling".
If Mavis had declared bankruptcy she would have been free of all debts within a year or so.
By now, her credit rating would be restored. Credit card companies would be offering her new credit because she would owe nothing and has had a steady job for the last 6 years plus assets acquired for the period of 6 years. A terrific credit risk!
The Reality of the Credit counselling?
Mavis will not pay off her debts for ten long years. When they are finally paid, she would not be a good credit risk, as she would not have any assets. Her kids will not be able to afford college or university and she will continue in the cycle of poverty.
Bankruptcy may not be a problem. It is a solution.
If it will take you longer than 2-3 years to pay off your debts, declare bankruptcy. You may have to anyway if you lose your job. After 6 years all is forgotten, meanwhile you can save your money, increase assets and live like a normal human being.
The credit card companies will line up like the vultures they are to offer you new credit all over again.