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QUESTIONS AND ANSWERS Am I eligible for your service? YES. Anyone who would like non-biased, confidential advice on money or debt management can come and see us. Our clients come from all backgrounds and lifestyles. My creditors are calling me demanding money I do not have. Can you help? Most creditors will give you some grace once they hear you have an appointment with us. Creditors are very supportive of Credit Counselling Services and are very cooperative with us when attempting to resolve client problems. Once you see a counsellor, they will create a realistic budget with you, assess your current financial situation and provide you with several options to help you resolve your problems with your creditors. I cannot make the required payments to my creditors. How can you help me? A counsellor will discuss solutions with you including a debt management program, direct negotiation with creditors, and money management or budget counselling. With a DEBT MANAGEMENT PROGRAM, we will first work out a realistic budget with you. Then we will ask your creditors to reduce your monthly payments to match your ability to pay (as determined by your budget). Creditors are still paid in full - it just takes a little longer. In some cases, creditors will reduce interest charges to help reduce the repayment time. Our payment plans have a very high acceptance rate because of the strong support of creditors for Credit Counselling Services. Is it true that with a DEBT MANAGEMENT PROGRAM you will handle all of the payments to my creditors? Yes. You make the agreed upon payment to us each month, we place the money in a trust account and disburse it to your creditors once a month on your behalf. If I pay less money towards my debts through a DEBT MANAGEMENT PROGRAM, how long will it take me to get out of debt? Debt Management Programs are designed to be completely paid in no longer than four years (and up to nine years for a student loan) and can be paid much sooner depending on your ability to pay and size of debt. Many creditors will waive or reduce interest charges and this allows you to get out of debt quicker. What does it cost? There is no charge for you to get professional help in solving your debt or money management troubles through our individual counselling sessions. These services are provided free of charge. If you chose to start a Debt Management Program, you may have a small fee built in to your overall monthly debt payment. Payments are based upon a client’s ability to pay, and in most cases, your overall payment is considerably lower than what was required from creditors. We are a non-profit, charitable organization and any fees collected help to offset a portion of our operating costs. How does the Centre make money? We are a non-profit, registered charitable organization. We are funded through donations from creditors (banks, finance companies, trust companies, credit unions, and retailers) as well as contributions from major industry located here in Sudbury. Who will know I have gone to Credit Counselling? No one will know you have been here unless you tell them. Our Service is discrete and fully confidential. We will not disclose any information to anyone unless you consent in writing for us to do so. Please see our PRIVACY POLICY for more information. Will a DEBT MANAGEMENT PROGRAM affect my credit rating? Your creditors may report your accounts as being paid back slowly or may record a negative mark if they drop the interest rate. However, a report that you are making an honest and sincere effort to resolve your debt problem is a positive note in your credit file. Creditor reports normally stay on your file for six years after the debt is paid off. However, upon successful completion of your Debt Management Program, your credit rating will be wiped clean within 2 years as further incentive for you. For more information about credit ratings, go to www.equifax.com or www.tuc.ca. What happens to my credit rating if I file for bankruptcy? A bankruptcy will affect your credit rating for seven years during which time it will be difficult for you to get credit. Although bankruptcy is sometimes a valid option, it also has negative implications such as loss of assets and feelings of failure. Credit Counselling Sudbury, a division of Sudbury Community Service Centre Inc. may have options that will help you to avoid a bankruptcy and all of its associated problems. |
