Role of Credit Counsellors in Debt Management
Credit counsellors are essential to the management of debt. They offer guidance and support to people who are having financial difficulties. This can involve advising on various debt relief options, creating a DMP and providing ongoing assistance for the plan’s duration.
The first thing a credit counsellor will do is evaluate your financial situation. Your income, living expenses, and debts will all be looked at to determine your financial status. They will then review the various debt relief options and assist you in choosing the best one.
The credit counsellor will assist in setting up a DMP if that is the best course of action. They will bargain with your creditors to arrange for lower payments and, if possible, freeze interest and fees. Afterwards, they will oversee the plan and allocate your monthly income to creditors.
Along with providing ongoing support for the duration of your DMP, credit counsellors can also help. This may entail periodically assessing your plan to make sure it still meets your needs and offering advice if your financial situation changes.