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4 Crucial Inquiries to Ask Credit Counsellors about Their Compensation

By Paul Murphy

In the realm of financial counselling and debt management, understanding the roles of Credit Counsellors and Licensed Insolvency Trustees (LITs) is crucial. These professionals play a vital role in helping individuals navigate their financial challenges, offering guidance and solutions to achieve financial stability. One important aspect to consider when seeking help from these professionals is their compensation structure. You can ensure transparency and clarity in the services provided by asking the right questions about their compensation.

Who are Credit Counsellors

Credit Counsellors are individuals trained to provide advice and guidance on managing finances, budgeting, and debt repayment strategies. They work closely with individuals to develop personalized plans to improve their financial situations and overcome debt challenges.

What is a Licensed Insolvency Trustee (LIT)

A Licensed Insolvency Trustee (LIT) is a federally regulated professional licensed by the Office of the Superintendent of Bankruptcy. LITs are authorized to administer insolvency proceedings, including consumer proposals and bankruptcies. They provide advice on debt relief options and help individuals make informed decisions about their financial future.

4 Crucial Questions to Ask Credit Counsellors About Their Compensation

If you’re in a financial crisis, taking your time and learning the facts is your number one priority. The unfortunate reality is that creditors want to get as much back from you as possible… You need to ask these questions to ensure that you’re working with someone on YOUR side.

  1. Why is there an impact on my credit score if I am paying the debt back in full?
  2. How come the fee is so high, I thought non-profit credit counsellors are free?

To view the other key questions that you need to be asking, along with the specific steps to follow while visiting a credit counsellor, download our guide!

Is There a Difference Between a Credit Counselor and an LIT?

While both Credit Counsellors and LITs offer financial counseling services, there are key distinctions between the two. Credit Counsellors primarily focus on debt management, budgeting, and financial education, whereas LITs are specifically trained to handle insolvency proceedings and provide formal debt solutions such as consumer proposals and bankruptcies.

How Does 4 Pillars Fit into this?

4 Pillars is a network of financial professionals specializing in debt restructuring and credit rebuilding strategies. We work with individuals to develop personalized debt relief plans and provide ongoing support to achieve financial wellness. By consulting with 4 Pillars, individuals can access expert guidance on debt management and financial empowerment.

The debt industry is complex and designed to work in favour of banks, credit card companies, and creditors. We’re changing that. At 4 Pillars, we use education and our extensive experience to show you the best path out of debt based on your unique financial situation.  Please contact a 4 Pillars specialist for instructions on how to deal with your situation.

Get the REAL insight into how credit counsellors make their money.


When seeking financial guidance from Credit Counsellors or LITs, it is essential to inquire about their compensation structure to ensure transparency and alignment with your financial goals. By asking the crucial questions outlined above, individuals can confidently make informed decisions and navigate their debt challenges. Remember, understanding how these professionals are compensated is a key step toward achieving financial stability and peace of mind.

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