• Counsellors at non-profit credit counselling agencies do not work on commission. They don’t receive bonuses or incentives to push products or services. Consequently, they can focus on finding the right solution for every one of their clients regardless of whether their agency offers the best solution or someone else does. The important thing is being objective and always doing what is right for the consumer – not what is in the agency’s best financial interest.

• The Counsellors of most non-profit credit counselling agencies also spend time helping everyone of their clients create a personal or family budget before suggesting any debt “solution”. Unfortunately, not all for-profit credit counselling companies do a good job of this. This step is vitally important because without doing this it is impossible for a Counsellor to know which debt options will really work out best for their client.

• All creditors work with non-profit credit counselling services. While many companies claim they can advocate and negotiate on a debtor's behalf, many creditors often refuse to work with for-profit credit counselling companies.

• Because the vast majority of non-profit credit counselling organizations have established strong reputations, creditors tend to trust them and are often eager to work with them to get their customers back on track. When it comes to advocating for debtors, nothing beats trust.

• Leading non-profit agencies also trend to attract very experienced employees from the credit industry who are looking to use their experience to make a positive difference in peoples’ lives.

• Next to earning the trust of the credit industry, the next best measure of success is the referrals an agency receives along with their track record.

• Most non-profit credit and debt counselling agencies receive a substantial portion of their new clients purely from referrals. When non-profits survey their clients to see how satisfied they were with the service they received, some members of Credit Counselling Canada, Canada's national professional credit counselling association, report that up to 97% of their clients say they would recommend the agency’s services to others.

• Professionals, government agencies, community and business organizations, and even a large number of creditors refer tens of thousands of people to Canadian non-profits every year.

• Most non-profit credit counselling organizations have exemplary track records. Many of them have served hundreds of thousands of Canadians for a decade or even longer without ever receiving a single complaint from the Better Business Bureau.

• While most non-profits do not advertise their internal standards that they commitment to live by, they are the highest in the debt relief and credit counselling industry – in fact, they are unparalleled among any for-profit companies.

• All non-profits are registered charitable societies and are accountable to the Canada Revenue Agency.

• All reputable non-profits are accredited members of one of two professional credit counselling associations (membership in these organizations helps to protect consumers by ensuring accountability and national standards):

• Credit Counselling Canada
• Ontario Association of Credit Counselling Services

• Most non-profits are also accredited members of the Better Business Bureau in good standing.

• Non-profit credit counselling services typically offer excellent service for only a fraction of the price that for-profit agencies charge consumers. The reason that non-profits can do this because they are supported by the credit granting community. Credit cards create opportunities for people to incur substantial amounts of debt. So it only makes sense that credit card companies should play a role in funding and supporting organizations that help people resolve their credit card debt and get their finances back on track.

The credit granting community supports non-profit credit counselling services in the following ways:

• If it makes sense for one of their customers to go onto a non-profit Debt Management Program, creditors will usually either reduce their customer’s interest rate to zero or substantially reduce it. This allows the non-profit Debt Management Program to help someone repay all of their credit card debts within 5 years (3.5 years on average).

• Creditors also support non-profits with donations to fund their activities. This is important because most non-profits help around 80% of the people who seek their help for free.

• Canada’s two credit reporting agencies also allow non-profit credit counselling agencies to erase the records of bad debts that were paid off through their non-profit programs two years after their Debt Management Program or Debt Settlement Program is completed by a client.

• The staff of many non-profit agencies often have very good relationships with the staff of major creditors. The trust that is built through these relationships gives the staff of non-profits the opportunity to strongly advocate for debtors and ensure that the creditor cooperates with the non-profit agency so that a solution can be reached that is in the best interest of the debtor.

• Many non-profit credit counselling organizations have good relationships with not only creditors but also consumer protection authorities, government agencies and the media. Many agencies work tirelessly to promote education, policies and actions that will help and benefit consumers who need help with their debts.

While some for-profit credit counselling agencies can be good advocates for debtors, we believe that most non-profit credit counselling agencies are often a better choice. Before settling on any agency, you should do a little digging and satisfy yourself that you are working with the best agency. Check with the Better Business Bureau and see how many complaints an agency has – even call up the Better Business Bureau and ask them who they would suggest. You can also check with your creditors and see if they work with the agency that you are considering dealing with. Ask them who they would recommend. Lastly, find out what kind of fees you are going to be charged if you decide to go onto some sort of program, and make sure that you are comfortable with the whole arrangement.

To find a good non-profit credit counselling organization in your area, click here.

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