When it comes to financial literacy, education is key. You don’t have to be bankrupt or in debt to seek financial help; in fact, with the rising costs of living, now is a good time to educate yourself on how to make informed decisions for your future.
One way to do so is through credit counselling.
Credit counselling can be done by a professional counsellor or an agency that specialises in debt settlement. Between the two, the latter usually has more experience and can provide better solutions especially for individuals in debt.
Enter Credit Counselling Singapore, a non-profit organisation in Singapore that helps individuals struggling with debt problems.
In this guide, we’ll explain what services Credit Counselling Singapore actually offer, signs that you may require credit counselling, and if credit counselling has any impact on your credit score.
Credit counselling is not about whether you should borrow money but about the best way to manage your debt and stay on top of your finances. It is a form of debt management that helps people with debt and ultimately build their financial health.
In that vein, a credit counsellor’s role is to:
All in all, a credit counselor aims to help you make educated decisions to achieve good financial health.
Credit Counselling Singapore (CCS) helps you understand how your credit situation affects your life, make informed decisions about borrowing money and managing your debts, and help build a stronger credit history.
You will meet with a certified credit counselor to discuss your situation and determine if you qualify for CCS Singapore’s services, including their Debt Management Programme (DMP) and recently-introduced Bankruptcy Rehabilitation Programme (BRP).
CCS charges a one-time fee of $30.
Credit Counselling Singapore (CSS) helps Singaporeans manage their debts effectively through debt management, financial literacy, and credit counseling programmes.
The Credit Counselling Service offers;
Assistance With Unsecured Debt Problems
Service | What it offers | Suitable for |
---|---|---|
Information Talks on Debt Management | Consumer debt management webinars Business debt management webinars General information on debt problems | SME owners Consumers All members of the public Those with debt problems |
Debt Management Programmes | Facilitated debt repayment arrangements for | Borrowers in genuine financial distress Consumers |
unsecured debts Information on dealing with unsecured debt | Public | |
Enterprise Credit Counselling Programme (ECCP) | Comprehensive debt repayment arrangement for unsecured business and personal debt | Small business owners |
Financial Counseling
Service | What it offers | Suitable for |
---|---|---|
Credit Counselling | Credit counseling for consumers Credit counseling for businesses Advice on debt management | SME owners Consumers All members of the public Those with debt problems |
Financial Education Programmes
Service | What it offers | Suitable for |
---|---|---|
Information Talks | Weekly information talks on debt management. Consumer debt management Business debt management | SME owners Consumers Public Those in debt distress |
Credit and Money Management Skills | Management of finances in a crisis Responsible use of credit | Organizational members like managers, supervisors, and staff The public |
Cents-ible Retirement Programme (CRP) | Managing finances in retirement | Those nearing retirement Retirees All public |
Money Management Skills | Money Matters Improving Money Management skills Managing money during work transition Towards Financial Wellness | Working adults Those in career transitions Social organizations, SSAs, and FSCs |
Mental Health for Seniors
Service | What it offers | Suitable for |
---|---|---|
Riding the Waves of Change | NSA-Supported Mental wellbeing Course | Retirees Seniors |
The credit counseling process by CSS involves;
Credit counselling is best for people who fall in the following categories:
With that said, credit counselling services can be used by anyone who wants to resolve their financial problems and get back on their feet again. They are not just for people who have suffered from unfortunate situations like bankruptcy.
Credit counselling is also a great option for those who struggle with credit card debt or spending. Your counsellor can help you negotiate with your creditor on how to reduce or even eliminate the interest you pay on your balance.
With debt counselling Singapore, you can get your debt under control and start rebuilding your financial life. You may have lost track of your finances due to bankruptcy or simply overspending on unnecessary items that didn’t help improve your financial situation, so this might be the best solution for you.
Debt counselling in Singapore can help you fix your bad credit and improve your credit score if you have a bad credit history with credit bureaus.
The main goal of credit counselling is to make your debt manageable and improve your credit scores. Credit scores help lenders determine whether you are the right person to borrow money from. If you have bad credit, this will hold back your ability to get a loan or credit card and cause problems obtaining other services such as car insurance or renting an apartment.
Credit counseling is a structured and confidential process that helps you understand your debt situation, plan for your finances and take action to improve your financial situation.
Here at Money Kinetics, while we believe personal loans can ease your financial burdens, we always have your best interests at heart. If you are struggling to pay off your debts or have a history of bad credit, you may want to consider credit counselling.