Credit counselling programs consolidate your basic consumer debts into a settlement plan which is offered to
your creditors. You then repay your debts through the debt settlement plan, which is facilitated by a credit counsellor.
While your debt settlement plan payments are in good standing your creditors with debts under the plan will generally
stop contacting you.
Credit counsellors are often trained as Accredited Financial Counsellors, but there is no law in place that requires them to
have any specific types of formal training or education. There is no legal requirement for anyone to call themselves a
‘Credit Counsellor’, so it’s important that consumers conduct due diligence on the specific qualifications of the counsellor.
Although credit counselling services may be offered by both for-profit and not-for-profit companies, neither are regulated
under a government authority as a professional debt service, even if they may operate as a registered charity.