Adam Gorry – is this Bankruptcy? Does it negatively affect your credit when you use this service?

5 July 2023

The Above is a Social Media Question

CDH Response

No, going through a Debt Relief Program is not the same as declaring bankruptcy. While bankruptcy involves surrendering assets to eliminate debt, Debt Relief Programs allow individuals to pay back a portion of their debts without impacting their assets. It’s a myth that these programs will kill your credit. In fact, maintaining a good credit score is often why people in debt continue to pay their bills on time with high-interest rates, even though it’s not the smartest financial move.

Creditors are primarily interested in whether a person can make their payments on time rather than just their credit score. While a high credit score can make it easier to obtain loans and credit in the future, it may not be as important when trying to get out of debt. In fact, in some cases, it may even be necessary to prioritize paying off debt over maintaining a high credit score.

Ultimately, the most important thing is to work towards becoming debt-free. This may involve making some sacrifices in the short term, but the long-term benefits of being debt-free will far outweigh any temporary inconvenience. So, if you’re currently struggling with debt, don’t let your credit score hold you back from taking the necessary steps to achieve financial freedom.

Yes, your credit score will definitely be impacted if you have debt, but it’s important to remember that it’s not the only thing that matters. Making your monthly payments on time and reducing your debt are crucial steps to improving your credit score. Even if you have a great credit score, it won’t be of much use if you can’t manage your debt payments. Remember, the key is to focus on getting out of debt first and then work on rebuilding your credit score.

There are various options available to help you rebuild your credit, such as applying for a secured credit card, which requires a cash deposit that serves as collateral. By using a secured credit card responsibly and paying on time, you can improve your credit score significantly over time. Additionally, there are other products and services available to help you reclaim your credit standing in a short amount of time. We assure our clients 12-18 months.

It is essential to work with the right company that can provide you with the proper representation and assistance to manage your debts effectively. At our company, we not only assist our clients in managing their debts but also provide comprehensive financial and credit education programs. Our debt relief programs are designed to equip our clients with the necessary tools to achieve their goals, such as purchasing a home or establishing a successful business. As the only company in Canada to offer such comprehensive services, we are dedicated to ensuring our clients are well-prepared for their financial future.

If you are struggling with debt, we want to help. Please visit our website at www.canadadebthelp.com and complete the questionnaire. A certified counsellor will reach out to you during business hours.