It’s a known fact that debts are a part of a person’s life, be it towards friends and family or, more commonly, in the financial sense. Applying for a loan is often necessary, and with the abundance of licensed moneylenders in Singapore, this has never been easier. But if not armed with the proper knowledge, an individual may find themselves suddenly struggling to pay off the debts they’ve incurred.
So, how and where does one gain the necessary financial literacy to avoid such a situation? Similar to other solvable issues in life, the solution lies in appropriate counselling－credit counselling, to be specific. Credit counselling is a term that is yet to be a commonplace word in the Singaporean household, but with its helpful benefits, it shall soon reach this much needed exposure.
Read on below to know what credit counselling is and how one can apply for it.
Credit counselling defined
Credit counselling is an educational service that provides financial guidance to consumers. The counselling mainly imparts helpful advice to individuals based on their financial situation and also directs them to other related and useful resources.
With its assistance, it aims to cultivate proper debt management skills to the populace, eventually shaping them to become financially responsible citizens.
Who offers credit counselling in Singapore?
Typically, this service is provided by non-profit organisations. For Singaporeans, the independent, non-profit organisation that they can turn to is Credit Counselling Singapore (CCS). This entity offers a multitude of services related to management and literacy regarding one’s finances. With these services in tow, the organisation aims to empower individuals (and enterprises) to become financially resilient.
Delving deeper into what they offer, their services are mainly classified into two divisions: assistance with unsecured debt problems and financial education programs. The former includes, but is not limited to, the following:
– Information Talks on Debt Management (Consumer and Business)
– Debt Management Programmes (Consumer and Licensed Moneylender)
– Financial Counselling (Consumer and Business)
When it comes to the educational programs, the services they offer are:
– Centsible Retirement Programme
– Financial Sustainability During a Work Transition Workshop
– Money Matters! Workshop
– MOVE! Towards Financial Wellness Programme
How to apply for credit counselling
Before a person can get credit counselling at CCS, they must first accomplish 3 steps. These steps are:
1. Attend the CCS Debt Management Webinar
Before a person can attend a counselling session, they must attend either of two options. These are:
– Debt Management Webinar
– Online Debt Management Course
In both events, the CCS will share options on how to address debt, the do’s and don’ts when dealing with it, and how an applicant can deal with creditors.
2. Submit a request for a counselling
If a person requires additional assistance in understanding their finances, the next step shall be to apply for the counselling session.
To schedule an appointment with their Financial Counsellors, one must first submit the relevant financial documents and a Counselling Request Form, which can be acquired during the talks, webinar, and online course from the previous step.
3. Attend a 1-to-1 counselling session
After the CCS receives a request, they will contact the applicant and furnish them with details of their counselling session schedule.
In this session, an assigned Financial Counsellor will work with the applicant to estimate the latter’s income and expenses, determine their payment capabilities, and everything else to identify the best options to address their debt problem.
Smart management of one’s debts is entirely possible with the assistance of a helping hand. Thanks to the CCS and their credit counselling services, proper financial education is readily within reach, allowing a debt-free life to be more attainable.
Once you’re financially wiser and ready to clear off any remaining debt, look around and research the debt consolidation loans in Singapore that will fit your needs.