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Will Debt Restructuring Affect My Credit?

“What kind of effect will your debt restructuring program have on my credit?”

The honest and direct answer is that anytime you seek to manage your debt restructuring with any counselling or restructuring program it will always have a negative effect on your credit. Don’t let anyone deceive you by promises your credit will remain in good standing. This is simply untrue!

However, our credit counselling program should easily improve your credit worthiness (ability to get borrow)!

Credit Score vs. Credit Worthiness

Credit score and credit worthiness are two different things. People in a lot of debt may possibly have a great credit score, but the reality is they likely cannot qualify for any credit (loans or credit cards etc). This is because if you are ‘maxed out’ on all of your credit cards and lines or credit then it is almost impossible to get approved for anything (loan) even with a great credit score.

So the idea with us is to help our clients reduce debt first, improve their credit score, and then end up with greater credit worthiness than when they first came in.

Here’s a question to consider when you are drowning in debt: Is your credit doing you any good and what can your credit score do for you?

Often times we hear people say “I have great credit and I don’t want to wreck it.” People will cling to their credit score, but it is of no benefit to them if their debts are too high and if all of their cards are maxed out anyhow!

Can you afford the debt you currently have? How long will it take you to pay off your creditors?

Three Questions To Ask Yourself

If you have “good credit” but have high unmanageable debts, you need to weigh if your “good credit” is worth maintaining, or is it time for debt restructuring to “renovate and rebuild” your credit score?

So here are some more questions to consider about your credit to see if it’s “salvageable” or if it’s time to “renovate“:

  1. If you had to buy a new vehicle right now, could you get approved at a low interest rate?
  2. If you were looking at buying a home right now, would you qualify for a mortgage at a competitive low rate?
  3. If you went to the bank to consolidate your debt, would you be approved?

If you’re carrying a heavy load of debt then the answer is likely NO, you would not qualify!

How 4 Pillars Victoria Can Help You

The good news is, we at 4 Pillars Victoria only work for your best interest to help you obtain the very lowest possible settlement on your debt in order to avoid bankruptcy. We also guide you through a personalized credit rebuilding system to ensure that you can obtain a best rate mortgage as well as competitive car loan rates.

We have the best credit rebuilding program in the industry. This program has been proven to successfully help our very satisfied clients, throughout our 50 offices across Canada.

Contact us TODAY! Come and meet with our team to start the process of being debt free faster and to welcome a NEW beginning for you and your family!

Enjoy life after debt

We can help you reduce your debt by up to 80% and get your life back.