In situations where debt is not too excessive and somewhat manageable, a credit counselling service may be able to review and assist you with your financial situation. These organizations contact creditors on your behalf, provide education on avoiding debt and personal budgeting strategies, as well as counselling.
A credit counsellor will meet with you and determine how much you can pay each month towards your bills. The counsellor then works as a money mediator and the money you contribute is placed in a trust account before being sent to your creditors once a month. Typically you will pay the full amount of your unsecured debt over time. The credit counselling organization will provide you with a positive note in your credit file if you carefully adhere to the program.
