BC Credit Counsellors; BC Credit Counselling

BC Credit Counsellors can help you gain the discipline you need to take control of your finances. They will work with you to develop a payment plan to repay your creditors in full over an extended period of time. You make one monthly payment to the BC credit counsellors and they will distribute the funds to your creditors over time. The fees of BC credit counsellors often must be paid in addition to the amount owing to your creditors.

In certain circumstances BC credit counsellors may be able to negotiate a reduced interest rate and obtain the consent of your creditor to discontinue collection action. Different BC credit counsellors will have different fees and payment terms. As all BC credit counsellor will have different fees and payment terms be sure to understand what your total cost will be.

Keep in Mind

It is important to keep in mind that you must be able to afford the monthly payments for credit counselling to work. You should not consent to a plan with any BC credit counsellors that is too long. We believe that if you can repay a reasonable amount over a reasonable period of time to your creditors you should.

We see many individuals who struggle with onerous payment plans.

Rule of Thumb

A general rule of thumb is that most payment plans made through BC Credit Counsellors should not extend more than three years, nor should they require onerous monthly payments. We use the Superintendents’ Income Guidelines when determining an appropriate payment in proposals. Those guidelines suggest that you should pay 50% of your income that exceeds a standard amount. Those amounts are determined based upon your family size.

Common Myths about BC Credit Counsellors

MYTH: All "Non Profit" Credit Counselling Agencies are completely independent and impartial.

FACT: “Non Profit” Credit Counselling Agencies are not independent and impartial. They are funded by credit grantors and may have a conflict of interest in giving impartial advice. A recent Consumer Affairs Canada funded report on the Canadian Credit Counselling Industry warns that some non-profit credit counsellors may advise only those solutions that bring in funding via commissions or donations from creditors.

MYTH: Every Credit Counsellor is well trained, highly qualified and government regulated.

FACT: A recent Consumer Affairs Canada funded report on the Canadian Credit Counselling Industry warns that a lack of regulation of the industry makes consumers vulnerable to receiving poor advice from untrained or poorly qualified counsellors.