Finance and Credit Professional

The credit counselling Story;

financial counselling in Canada has become a approved method of dealing with debt but may not be the right methode for individuals to deal with their debt. In most cases clients will seek out debt consolidation loans to eliminate their unsecured debt and begin with a clean slate. even though this takes care of the momentary problem it oftentimes causes much larger issues down the road. The reasons why this happens are;.

First off, people are creatures of habit. By getting a debt consolidation loan you're only avoiding the essential issue, your habits. Although a consolidation loan will repay your original debt it does not deal with your spending habits. Commonly People obtaining debt consolidation loans to pay off their debt end up in twice the debt they started with.

This being the other reason debt consolidation loans won't work. Once individuals eliminate their revolving credit it allows them freedom to available debt, causing the trap to start over again. Often times Canadian's wind up with their revolving credit maxed out again, as well as, the consolidation loan that they were issued to eliminate their debt. The most familiar statement I hear as a debt manager is "I have to secure a consolidation loan to re-pay my debt", "I never want to use credit cards again". In theory this is great but more often than not this doesn’t happen

Unless an individual is prepared to tackle their overall problem (i.e. their spending habits) they will not succeed with a debt consolidation loan. In actual fact this is one of the main reasons that the banks have stopped issuing debt consolidation loans. They have, for the most part, stopped this because they recognise that this is only feeding the problem and not solving the problem. If you truly want to deal with your debt, cut up your credit cards, stop access to any revolving credit, make your monthly payments to pay the debt down and track your spending. It is only through the tracking of your spending habits that you will truly understand the fundamental issues of your debt. In order to deal with your debt problems, you must first understand how you got there in the first place.

If you want to live debt free you must recognise your unnecessary spending habits and make changes to eliminate them from your life. If you were to ask me what lesson I teach my clients the most, it’s how to track their spending and identify unnecessary spending.  

 



Greg Martin
Debt Consolidator
Phoenix Credit and Debt Counsellors

 Debt Consolidation Canada

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