credit counselling vs line of credit

Is credit counselling a last resport if your bank refuses to help consolidate debts? or can it be accessed at anytime? I have old debts that have gone to credit bureau. I have asked credit bureau if I pay off these old debts through my bank will it help or hinder my credit rating? her response was, I can’t answser that but if you want you have the option to file bankruptcy.

Posted from: British Columbia

One Response to “credit counselling vs line of credit”

A licensed trustee said...

Credit counselling is certainly an option worth considering, as are bankruptcy or a consumer proposal. The one you pick really comes down to “which you can afford”. With credit counselling you repay the debt in full over 4 years with no new interest charges. In bankruptcy you make payments based on your household income and family size. With a consumer proposal you repay a portion of your debt (so it fits in between the other two). To figure out which is right for your situation you may want to speak to a trustee – use the links on this site to find one in your area.