Every day there is a new ad on the radio, TV or phone call promising to reduce your interest or to settle your debts. The offers are enticing, why would you pay back the full amount at high interest rates if you don’t have to? Unfortunately there is no easy way out of debt and you may not be getting all the information you need to make an informed decision.
Debt settlement or debt reduction companies have sprung up in Canada after US Federal Trade Commission effectively shut them down across the United States leaving Canadians vulnerable. Some provinces now have legislation in place to help protect consumers.
Our Certified Credit Counsellors advise you to be extremely cautious when a company offering to help you with your finances tells you to:
Unsolicited offers should trigger alarm bells when coming from companies that claim they can settle debts, no matter what the reason and with instant approval.
When looking for possible debt solutions you should:
What might have been a good solution to your friend’s problem may not be the right one for you. Credit Counselling Canada members across the country are able to assist you to determine your options and lay out the pros and cons for each of them. The services are free or low cost and will help point you in the right direction. You decide what is best for you and your future. Our members are here to help.
The federal government’s Financial Consumer Agency of Canada has issued a warning to consumers about debt settlement claims. Find more information on debt settlement.