Not For Profit Credit Counsellors - doesn't mean they are looking out for YOU!

Not For Profit Credit Counsellors – doesn’t mean they are looking out for YOU!

For many Victoria residents there are a dizzying amount of service providers out there to help you with your debt. There are Banks, Trustees, Debt Poolers, For Profit Credit Counsellors, and Not-For-Profit Counsellors.

The consumer who is looking for help with debt can quickly become overwhelmed with a barrage of messages “We help you with debt, consolidate your debt, reduce your debt" but many of these service providers are there to assist the creditors and act on their behalf… not yours!

 4 Pillars is the only service provider out there that is truly on your side. We work for YOU. We do not represent the creditors in any way, shape, or form. 

Although I could go into great detail about all of the service providers I want to focus on what I consider to be one of the biggest misrepresentations in the debt industry. The Not for Profit Credit Counsellors.  Most people assume that a Not for Profit organization is caring and looking to serve their needs. They are devoted to a good cause and seeing that cause come to reality – revenues and profit? Those are afterthoughts.

Not for Profit status simply means all money that flows into the organization must eventually flow out in the form of legitimate expenses. The result is the organization does not show a profit at the end of each year. Please keep in mind that I am not trying to paint a bleak picture for all Not-For-Profits. Many would not be able to achieve their mandate and their mission without their donors contributions, and the many volunteer hours they receive. I am speaking specifically about Not-For-Profit Credit Counsellors.

Not for Profit Credit Counsellors represent and are supported (both financially and in spirit) by the banks and credit card companies. It is sad but true! And many people that enter into one of their debt management programs are completely unaware that there is a much better option. The counsellors are there to help the banks and credit card companies recover as much of their money as possible. They do this by giving debtors (you) a break on the interest rate they’re currently paying on the debt but they do not help you with reducing debt.

So, who is the Credit Counsellor truly representing? Does the counsellor have the debtor’s needs and best interests at heart? It is important that debtors are crystal clear on the purpose for the credit counsellor’s services. The counsellor’s purpose is to recoup money for the bank and credit card companies they are not here to help you with paying off your debt.

Credit Counselling is effectively the banks’ way of dissuading debtors from seeking help through Debt Restructuring such as Consumer Proposals and in the worst case, Bankruptcy.

If someone is struggling with debt and wants to learn about solutions that may be available to them to receive debt relief in Victoria, it’s best to speak with someone who is truly looking out for their interests. Blair Greenwood at 4 Pillars Victoria represents the debtor and only the debtor. We are interested in finding a solution that is most likely to help them succeed in getting out of debt and staying out of debt.