There was a time I dreaded thinking about my finances. I was new to Canada and had no idea that somewhere in the background, there was a body that kept track of my financial health. It took time to really grasp the importance of staying on top of my finances, but I got there eventually, just like you will.

Managing finances can be a challenging task, especially for renters who often juggle multiple financial responsibilities. From paying monthly rent and utilities to handling unexpected expenses, it's easy for finances to spiral out of control. This is where credit counselling can play a crucial role. Credit counselling may help you improve your credit score.

“It’s important to talk and think about your money to ensure it meets your needs”

Robbie Shifman, Community Outreach Manager, Consolidated Credit

What is Credit Counselling?

Credit counselling is a service that helps people understand and manage their finances better in order for you to have a healthy credit score. It's like having a financial coach who helps you pay off your debt and save for the future. When you meet with a credit counsellor, they'll look at your income, expenses, and debts. Credit counsellors can teach you how to make a budget, negotiate with creditors, and understand your credit report. 

The Importance of a Healthy Credit Score

A credit score is a three-digit number that represents how likely you are to repay borrowed money on time. It is calculated based on information from your credit report, which includes details about your credit history. Maintaining a good credit score opens doors to better financial products, helps in emergencies, and supports long-term goals like buying a home or starting a business. In essence, a healthy credit score is a cornerstone of financial well-being. We talk about this more in 8 Ways I Can Get My Own Credit Score: Essential Knowledge for Renters. 

Can non-payment of rent or an eviction impact my credit score?

Non-payment of rent or eviction can negatively impact your credit score. In Ontario, most applications to the Ontario Landlord and Tenant Board (LTB) to terminate a tenancy is due to non-payment of rent. So if you are renting in Ontario and fail to pay rent, your landlord can file an N4 - Notice to End a Tenancy Early for Non-payment of Rent with the Ontario LTB.

When you are served and N4 notice, you have 14 days to pay your rent.

After that, your landlord can report the unpaid debt with a court order through a rental debt reporting service or a collection agency who will follow up with you to collect unpaid rent. If you do not pay rent owing, this information is sent to credit bureaus such as Equifax or TransUnion.

This is scary!

Yes, but it doesn’t have to be. If you are in debt, help is available. There are steps you can take and decisions you can make to manage your finances and get back on track.  This is where credit counselling comes in. It is a tool to empower you to take control of your financial wellbeing. Remember, seeking credit counselling isn't a sign of failure - it's a proactive step towards financial wellness. These organisations can provide the tools and guidance to help you achieve your financial goals. Don't hesitate to reach out and take control of your financial future.

Credit Counselling Organisations

“Tell your money where to go, instead of wondering where it went” 

Robbie Shifman, Community Outreach Manager, Consolidated Credit

If you are reading this, it means you have taken the first step in being accountable to your finances. Now, let’s talk about where you can go to get more help, because you should never struggle alone! 

There are multiple organisations that provide credit counselling services. I outline three of them here, but I encourage you to seek out other organisations to find your best fit. This is about your finances, your life.

Consolidated Credit

Consolidated Credit  is a non-profit organisation that provides financial education and services to help individuals manage and reduce their debt. They offer debt management programs, debt consolidation, financial education, and housing counselling among other services.

Credit Counselling Society of Canada

The Credit Counselling Society (CCS) is a non-profit organization with offices across western Canada and Ontario and offers free credit report reviews. Counsellors can explain how credit scores are calculated, what factors affect them, and how clients can improve their scores over time.  

Credit Canada

Credit Canada, another non-profit credit counselling agency that offers free, confidential credit counselling services to individuals facing financial challenges. Certified credit counsellors work one-on-one with clients to assess their financial situation, discuss their concerns, and create a plan to manage debt and improve financial health. As well, the organisation also provides counselling services related to housing, including advice on mortgages, rent, and foreclosure prevention. 

Concluding Thoughts

Healthy credit is crucial for us renters. It's not just about keeping a roof over our head - it's about building a solid financial foundation for our future. And you know what? When tenants are on top of their finances, everyone wins. Remember, seeking help isn't a sign of weakness - it's a smart move that shows you're serious about your financial health. Your future self (and your landlord) will thank you. Trust me, as a renter, a little financial savvy goes a long way in the world of renting.

Robbie Shifman joined Consolidated Credit Canada in April 2021 and is a major part of our team’s efforts to educate Canadians about how to get out of debt. As Community Outreach Manager, he is responsible for the development and delivery of financial education programs and workshops throughout the country. With a background in community development and quality of life research, he recognizes how important it is for people to balance their financial matters with their personal needs and wants.Robbie holds a Master of Applied Health Sciences from the University of Waterloo and a Bachelor of Recreation and Leisure Studies, with honours, from Brock University.