what is Debt Counselling and Management?
Debt counselling and management refers to services that assist credit consumers, including individuals and small businesses, in managing their finances when facing debt-related challenges. Through these services, credit consumers are guided to better understand their financial situation and to develop debt solutions based on their actual repayment capacity.
Debt Counselling and Management Agencies provide support through financial advice and by negotiating with credit providers to achieve more structured and realistic solutions. These agencies do not provide loans, do not purchase debt, and do not act as debt collectors. Their primary role is to help credit consumers manage existing debt through mutually agreed repayment plans, ensuring that repayments can be made consistently.
what you should know
01
Not a Loan or Refinancing
Debt Counselling and Management Agencies do not provide loans. Instead, they negotiate with credit providers to restructure or reschedule existing debt.
02
Counselling Sessions
Make full use of counselling sessions to receive guidance and assess your financial position. Be prepared to change and improve your financial habits to avoid recurring debt issues in the future.
03
Transparency of Information
Credit consumers must be honest and provide complete and accurate financial information regarding all debts and current income during the application process.
04
Commitment and Discipline
Credit consumers are required to adhere to the restructured monthly repayment schedule agreed under the credit management programme.
05
Prepare Supporting Documents
Gather all loan statements, income information, and prepare a list of monthly expenses.
Summary
Debt Counselling and Management Agencies assist credit consumers in managing their finances when facing debt-related challenges. These agencies play an important role in promoting financial literacy and supporting credit consumers in regaining control of their finances more effectively.
They do not provide loans or collect debts. Instead, they offer debt resolution plans agreed upon by all parties, ensuring that repayments are made in a consistent and sustainable manner.