Victoria, British Columbia (July 14, 2017) – Debt consultants from the Vancouver Island regional base of 4 Pillars Consulting Group explain how debt restructuring affects credit scores. Canada provides its citizens with several options for settling debt they otherwise can’t pay back alone. Many, however, are reluctant to approach debt restructuring specialists for fear of how it would affect their credit scores. What consumers need to understand is that the mere act of consulting with an expert proves inconsequential to credit rating. If anything, it shows creditors that a debtor is serious about reducing debt.



What directly influences credit score is the debt management plan that will be used. Understandably, the credit score will dip because the client has taken drastic measures to settle debt. When one files for bankruptcy, he will receive an R9 rating. This is actually the lowest score a debtor can have, and it will remain on his record for at least seven years. Filing for a consumer proposal will lead to an R7 rating, which is higher than R9 but still considered very low. An R7 rating indicates that the debtor has been able to strike a deal with his creditors, making him eligible for opening up new credit lines in the future.



The credit report will show that the debtor is regularly making payments through an arrangement with a debt consultant. Normally, this will remain visible for up to two years even after paying off the debt. One need not worry, however, as this will not affect their ability to open bank accounts. From there, a 4 Pillars Victoria or Vancouver Island consultant can help them rebuild their credit.



A high credit rating doesn’t necessarily translate to credit worthiness, especially if debts are too high and the credit cards are maxed out. Pay off debt first, and then work on improving credit score.



About 4 Pillars Consulting Group - Vancouver Island



4 Pillars Consulting Group - Vancouver Island is a dynamic, independent group of consultants specializing in personal and corporate debt resolution through financial restructuring and extending assistance to people in financial crisis. Representing only debtors, the consultants aim to offer clients the best solutions to their debt challenges. More information can be found on the https://www.facebook.com/4PillarsConsultingVancouverIsland.