Credit Counselling: How to Get a Handle on Your Finances

Do you find yourself constantly googling "how to get out of a debt trap" and ending up with nothing but get-rich-quick schemes and empty promises? Fear not, dear reader, for there is a much more practical solution to your financial woes - credit counseling! By seeking the guidance of a credit counselor, you can learn how to take control of your finances and make smarter decisions when it comes to managing your money. So put down that scratch-off lottery ticket and let's explore how credit counseling can help you get a handle on your finances.

Let’s Take a Look at Solutions Offered in Credit Counselling

Debt Management Solution

Debt management solutions usually involve a comprehensive review of your debts by a credit counsellor during the budgeting process. Here, the counsellor will develop a plan to eliminate your debts if you have any. If you are already making regular payments, the counsellor will determine if you can continue to manage them without difficulty. 

This solution encompasses various options such as debt consolidation and balance transfer with a low-interest rate, depending on your circumstances. 

Small Business Owner Counselling Services

If you run a small-scale business, credit counsellors can provide invaluable assistance with budgeting, cash flow management, and debt repayment. They can guide you through the fundamentals of small business finance and help you manage your finances better. 

Bankruptcy Counselling 

In situations where you have limited assets and are unable to repay significant loans, the credit counsellor may advise bankruptcy as a last resort. If you declare bankruptcy, your financial accounts will be frozen. In such cases, lenders may explore alternative options, such as using any collateral that they have to pay off the loans or selling valuable possessions through an auction. 

Student Loan Counselling

Student loan counselling can provide insights and guidance to help you formulate a plan for paying off and managing your student loans. Your credit counsellor can explore different repayment strategies that could fit your budget, as well as loan consolidation and refinancing.

Reverse Mortgage Counselling Sessions

If you have your own home and are looking for a way to supplement your income in retirement, a reverse mortgage could be a great option suggested by a counsellor. Getting assistance from a credit counsellor can help you determine if it is the right choice for your financial situation. 

Counselling Associated with Credit Score

Credit counsellors can analyse your credit reports to detect any potential errors that may be damaging your score. They can explain what factors are influencing your credit Score, and provide advice on how to improve your credit history. With their expertise, they can help you dispute any errors found on your credit reports and guide you toward better credit health.

General Counselling

General counselling refers to seeking guidance when you have multiple debts, such as a mortgage, student loans, credit cards, and so on, and are uncertain about how to manage them. During general counselling, a counsellor will carefully examine your income, expenses, and debts, and create a plan that prioritises crucial debts. They will also analyse your credit report and offer strategies to enhance your credit score. 

Credit counseling services are not limited to assisting those with multiple debts. They can also be incredibly beneficial for individuals who struggle with budgeting and tracking their expenses. So, whether you're looking to tackle a mountain of debt or simply improve your financial literacy, credit counseling is a valuable resource. Our team of financial experts at Policybazaar UAE is always prepared to offer comprehensive assistance to help you effectively manage your finances. Contact us via phone or email to learn more.