How much does credit counseling cost?

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Navigating credit counseling in Canada is like choosing a restaurant: costs vary widely. Non-profits offer fees as low as $0, while for-profits pile on charges. Watch for hidden fees up to 15% on payments! Many agencies offer free consultations - including Debt Insiders - check your local rules for potential savings in places like Ontario.

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Credit Counselling Question

How much does credit counseling cost? I’ve been considering credit counselling services, but I’d like to know how much they typically charge so I can budget for it.

From: Anonymous Question
Location: Abbotsford, British Columbia (BC)
Category: debt management plan

Credit Counselling Answer

In Canada, figuring out credit counseling costs can feel a bit like picking a restaurant for date night. You’ve got your budget-friendly, not-for-profit counselors who might charge little to nothing at all, and then there are the for-profit agencies that can have a whole menu of fees—setup, monthly, and membership—that add up faster than a surprise dessert. For a debt management plan, not-for-profit services offer setup fees that range from $0 to $99, and monthly fees between $0 to $75. On the flip side, Money Management International might charge setup fees from $0 to $75, while InCharge Debt Solutions have setup costs at $33 along with a $75 monthly fee.

Then there’s the fun twist of ongoing fees, potentially gobbling up to 15% of every creditor payment, or a flat fee up to 10% of the original debt in a single payment plan—kind of like the cost of the toppings on your pizza! Remember, in places like Ontario, the local rules might lower these costs. And here’s a little treat: many agencies - including DEBT INSIDRS - offers initial consultations for free, so you can assess your finances without dropping a dime upfront. Reach out to us today!

From: Insider Scott

Office of the Superintendent of Bankruptcy (OSB) Answer

The cost of credit counseling in Canada can vary significantly depending on the provider and the services offered. Credit counseling services may charge fees that can range from $0 to $500 or more, depending on the complexity of the services required.

However, specific regulations governing the fees charged by credit counseling agencies are not provided in the referenced legal documents. For definitive pricing information, it is advisable to directly contact credit counseling agencies or consult their websites, as they often provide detailed breakdowns of their service fees.

From: OSB Helper

Related Questions to Debt Management Fees

Here are the top 5 most frequently asked questions related to the cost of credit counseling, based on common online searches and current trends:

1. What are the typical fees for a debt management program through credit counseling?

• The fees often include a one-time setup fee and a monthly administration fee, which can range from $0 to $75 for the setup and $0 to $59 per month[3].

2. Do credit counseling services charge for the initial consultation?

• Most credit counseling services provide the initial consultation completely free of charge[2][3].

3. How much can credit counselors charge for setting up a repayment plan with each creditor?

• Credit counselors can charge a one-time fee of $50 for setting up a repayment plan for each creditor, and up to 15% of each payment made to the creditors[1].

4. Are there any additional fees for debt settlement plans through credit counseling?

• Yes, for single payment plans, credit counselors cannot charge more than 10% of the original amount of each debt they settle[1].

5. How do the fees of non-profit and for-profit credit counseling services compare?

• Non-profit credit counseling services generally have lower fees compared to for-profit services, which may charge higher setup fees, membership fees, and fees for each creditor[2][3].

If you have a question about debt see our debt questions or ask your own debt related question.

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