6 Credit Counselling Myths and Misconceptions Debunked

Are you struggling to manage overwhelming debt? Do you currently have financial problems you just don’t know how to fix on your own? If so, requesting an appointment for credit counselling may be the best option for you.

Credit counselling can help you gain control over your financial situation and enable you to improve your money management skills, so you can reduce your debt.

You may be hesitant to seek credit counselling due to myths and misconceptions that are floating around. If you’re on the fence due to these myths, you’ve come to the right place. We’re here to debunk some of the most common credit counselling misconceptions, so you can book an appointment with confidence.

1. My Financial Situation Is Too Bad. Credit Counselling Won’t Help

Right now, it might feel like you’re spiralling out of control financially. The bills are piling up and you’re drowning in debt. You might think your situation is too far gone. But the truth is it’s never too late to get help. Although it’s best to take control of your financial troubles early on, a credit counselling professional can still offer insight and advice to help manage your situation, regardless of how much debt you’re in.

2. You’ll Be Judged for Seeking Help

 

Everyone needs help every once in a while. There’s absolutely no shame in seeking the advice of a professional. No one will judge you for getting credit counselling. The opposite is usually true—those around you will applaud you for being responsible and taking steps to fix the financial situation you’re in.

The truth is many Canadians have trouble budgeting their finances. Personal debt in the country is at an all-time high. You’re not alone. Many others are in the same situation and will understand the struggles you’re facing.

3. You Can’t Live without a Credit Card

Having a credit card can help you pay for unexpected expenses, while also improving your credit score if used wisely. However, it’s a myth that everyone should have and needs a credit card.

Due to their high interest rates, credit cards often do more harm than good. With the help of credit counselling professionals, you can learn to budget and manage your expenses in such a way that you won’t require the use of a credit card, and so you can stop the downward debt spiral once and for all.

4. Credit Counselling Is Only for Those in Low Income Brackets

Credit counsellors don’t only work with people making low income. They work with people in all income brackets. Regardless of how much money you make, you can run into debt and may need help. After all, debt doesn’t discriminate. No matter how much money you make, you could have trouble budgeting or come into some unexpected financial difficulty.

5. Credit Counsellors Will Eliminate Your Debt

Credit counselling will enable you to create a plan of action to tackle your debt problems. Counsellors will help you better manage your money. However, it isn’t magic. A credit counsellor may be able to reduce your interest rates and get some fees waived but they won’t be able to cut your payments in half or make your debt disappear.

6. You Can Manage Your Debt on Your Own

Sometimes, all you need is to cut down on your unnecessary expenses to be able to make extra payments and effectively manage your debt on your own. Other times, your debt is too large, particularly in relation to your income, for you to be able to manage the situation on your own.

If you’re constantly missing payments and you’re paying far too much in interest, it’s best to seek the help of credit counselling to get the help you need to effectively manage your debt. You don’t have to do it alone—experts are available to help.

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