Managing Your Christmas Debt

NOTE: Following is a feature story about the debtor assistance programs offered by Service Nova Scotia and Municipal Relations.

Early in the new year is often a time when the joy of giving becomes the reality of paying. This often means reviewing our budget, cutting back, and a longer wait for non-essential items on our "wish list".

You may be facing more debt than you can pay back, and/or dealing with companies who are aggressively seeking larger payments than you can afford.

"We want to let consumers know that help is available through our debtor assistance programs," said John MacDonell, Minister of Service Nova Scotia and Municipal Relations. "If you need help in dealing with debt collection services, do some homework beforehand."

Several companies claim to offer debtor assistance services. It is important to research companies before committing to a plan. While gathering information, there are some things people should not do.

Never make a payment before a credit counsellor has provided services. People should also refuse to provide personal financial and identification information before getting a signed contract or other commitment to protecting their identity and privacy.

People should not enter into a contract before a debt settlement agreement is approved by all parties, debtors and lenders, involved.

Debtor assistance programs can't improve credit scores or ratings immediately, so consumers should beware of organizations that claim they do. Companies might also suggest a connection with the province's debtor assistance program where none exists.

People can meet with a licensed administrator who will review their situation and discuss options, at no charge, through the debtor assistance programs offered by Service Nova Scotia and Municipal Relations.

To contact an administrator, call 424-5200, toll free at 1-800-670-4357 or visit an Access Nova Scotia centre.

For more information, visit www.gov.ns.ca/snsmr/access/individuals/debtor-assistance.asp .