The constantly rising cost of living and fast-paced economy in Singapore has increased the quality of life among the people. This means that people from all walks of life will have more financial commitments although the government has implemented various initiatives to ease their burdens.
The Danger of Debts
Due to these situations, people are now facing a lot of debt problems. Whether it is a credit card or loans, many working adults and families are falling into the debt situation today and this is so much more prevalent today. In fact, many have found themselves taking one loan to cover another and before they know it, they have accumulated so much debt; their monthly salary would not be able to pay them all. The fact that banks and credit companies are giving out loans easily is not helping either.
The Credit Counselling Singapore or CCS is one such organization established to help solve this problem. This includes using programs, initiatives and public education on financial management to create better awareness among those in these predicaments. The CCS is a non-government agency. It is registered as a charity where its main role is to help people facing problems with unsecured debts in Singapore.
What is important for this to be successful is that the person must acknowledge that he has a problem which is difficult to solve. In fact, it might even be life and death as those who are in debts could drag the problem to their family and friends. Hence, they must come to terms that they cannot get out of this situation themselves and that is where CCS can help. While CCS do not offer loans and such, it can be the representative for the person who is in trouble and negotiate with the banks or the financial institution.
How does this work?
To begin with, CCS is a specialist in helping people solve their problems involving unsecured debts which are legal. They will start with a case for the person involved through a credit counseling session. This session will give CCS all the information it needs so that they can take the case to the creditors like the bank. This idea came up from the district judges from the Singapore State Courts after witnessing the rising problems and issues from debtors to the families who could not repay their loans. The foundation of CCS as established in 2003 with funds coming from the NCSS (National Council of Social Service) and Singapore Pools. In 2004, CCS became an official society and was officially launched later that year. A year after that, it was registered as a charity.
Services offered by CCS
CCS has many roles to play as it provides services to anyone in Singapore that needs them. Below are the major services that CCS provide on a full-time basis. People from all walks of life are welcomed to talk to the consultants in CCS if they need any further assistance.
Talks and Workshops
Focusing on financial education and money management, these events are extremely useful for the general public. One of the major reasons why people fall into the debt-trap is because they are unable to manage their money wisely. These talks provide people with the education they need on having a good savings plan, spending only what they have and not spending into the future, among other issues.
Debt Management Info Talks
Every week, CCS will organize the Info Talk on Debt Management. This is conducted either in English Language or Mandarin where it addresses the debt issue and all the relevant information that the debtors would need to know. Besides that, it includes what type of help can CCS provide to those in debts.
This service is targeted for an individual with a debt problem where it focuses on the issue and finds the solution for it. How it works is that a credit counselor will sit down with the individual who is in trouble. Then they both come up with an agreement based on the total amount of debts and then looking at what options are available. A monthly budget is then drawn up, detailing expenses and income and then how the debt problem can be solved. This will also take into consideration issues like mental stress, gambling addiction and such so that CCS can make any suitable recommendations to other agencies if needed.
Debt Management Programme (DMP)
The DMP is one of the most suitable plans that a person in debt can go into. It is a monthly-installment plan in which the individual will pay based on his ability. This is decided only after consultation with CCS with an agreed amount taking into consideration expenses and other commitments.