FAQs Archive - Debt Free Now

Q: Will a debt management program (DMP) help me build my credit?

Yes and no. While a DMP program will not directly build credit, a DMP will allow you to pay off your debts faster and with significantly lower interest rates than if you were to repay on your own. Upon successful completion of a DMP your counsellor will provide next steps for repairing credit and building wealth.

Q: What debts can be included in a debt management program (DMP)?

Any secured debt can be included in your program however, DMPs cannot assist with CRA debt, CERB, or student loans. In most cases your credit counsellor can provide alternative solutions for these types of debts outside of a DMP.

Q: How do credit counsellors help me become debt free?

In the real world, debt happens. Dogs get sick, kids have hockey, cars need winter tires; managing debt isn’t just about what’s on the credit report, or about the collection companies calling, or the bills that have fallen behind; it is about you, your personal financial situation, and a plan that makes sense for you. If you are struggling with money or debt, a credit counsellor can help you manage your budget and explore all of your options to effectively deal with your debt.

Q: Are credit counsellors financial advisors?

No. While some of the services a credit counsellor offers overlap with what a financial advisor offers, credit counsellors are NOT financial advisors.