If you’ve exhausted all other options (such as eating Raman noodles for dinner twice a day or cutting back on cable TV) and still can’t make your minimum monthly debt payments, it’s time to consider credit counseling services. The good news is that most counseling agencies are legitimate, and they work to help consumers become financially healthy again. Find Out More
The first step is to choose a counselor and set up an initial consultation. Ask about certification, nonprofit status, and fees, and look for an agency that accepts online or telephone payments and has a system to keep personal identifying information secure. It’s also a good idea to ask for client references and if a credit counselor is available to answer questions in person.
The Role of Credit Counselling Services in Managing Debt in Singapore
During your interview, a certified counselor will take a comprehensive look at your financial situation and identify issues that caused you to become buried in debt. They can also design money management programs to suit your needs, such as a budget or debt repayment plan.
In many cases, counselors will recommend a debt management plan where you deposit a lump sum each month into an account that the counselor will then use to pay your creditors directly. They may be able to negotiate lower interest rates on your debts and even get late fees waived. As a result, your debts will be paid off in three to five years, and you’ll have a more manageable monthly payment. In addition, your credit score will improve as you make on-time payments.