Debt can be intimidating and can affect your credit health. Credit counselling support can help you manage your debts and establish a repayment strategy. Here is why you should look into credit counselling tools and services.
What is credit counselling?
Credit counselling is the support that you receive to manage debt. Credit advice allows you to build a debt repayment strategy that is personalised to your individual situation. Several organisations provide credit counselling as a non-profit or for-profit service. Credit counselling also entails receiving professional advice to help you negotiate with your creditors and maintain your credit rating.
How credit counselling works?'
Credit counselling helps you understand the debt that you need to confront and tackle it step by step. You gain insights on how your debt works and get to create a repayment plan as per your specific situation. With this plan, you will know the debts to close first and how to strategically clear all the debts over a planned timeframe.
Imagine that Ajay is a salaried employee who took a personal loan for a home renovation. Due to a personal emergency, he had to take another loan. To manage his personal expenses, he used the maximum limit on his credit card. The debt became unmanageable with his limited income, and he started to miss the deadlines of his credit card bills. The accumulated debt started to impact his credit health. With sound credit advice, he can work out a strategy to repay his debts and regain control of his finances.
In credit counselling, professionals review your financial status and monthly income to create a personalised debt repayment plan. This plan can help to achieve financial stability. These services may or may not come with a cost. In case you do not wish to discuss your debt with an external service provider, you can use tools like Credit Pass to manage your credit profile.
Tools to help manage credit health
Keeping your credit health in check is important because it can impact your ability to get financing options such as loans or credit cards. Lenders receive details of your credit health from credit rating agencies while evaluating your loan and credit card applications. And one of the leading credit rating agencies in India is CIBIL. You can now get access to your credit health insights by subscribing to Credit Pass, which is powered by CIBIL.
Credit Pass offers insights into your credit profile, demystifying your credit score. It provides a personalised dashboard that tracks your financial history, debts, and credit cards. The clear visual data allows you to see the entire picture and make educated financial decisions. With monthly credit checks, you can keep track of your credit score and monitor fluctuations. The tool goes beyond your score and provides insights into the key factors impacting your creditworthiness. These factors include repayment history, credit utilisation, credit mix, and credit inquiries. The Credit Health Report provides real-time information on your credit health.
Credit Pass offers two flexible subscription levels to meet your needs and budget. The basic plan costs Rs. 299 for 6 months, and the premium plan costs Rs. 499 for 12 months.
Whether you are battling with credit card debt or missed loan EMIs, credit counselling can help you to get back on track. Tools like Credit Pass can help with credit health monitoring enabling you to improve your credit score and reach your financial goals.
