Run away
to let your parents, wife and own children carry your debt is a
coward; not a man.
CCS Hotline: 1800-CALL-CCS (1800-2255-227). Mondays – Fridays,
9am–6pm
Address: #05-04, 210 Middle
Road, Singapore 188994 |
Tel: 6338 2663 | Fax: 6338 6586 |
Email: [email protected]
CCS is to assist consumers recover from serious debt
problems by providing general credit management information, credit
counselling and where applicable, put up a debt repayment plan for
suitable consumers. To assist indebted individuals resolve
their debt problems and educate members of public on financial
literacy.
Need Help?
SEEKING ASSISTANCE FROM CCS
There is this 3-step process to seek assistance from CCS:
STEP 1 – Compulsory
Attendance of the Free Info Talk on Debt Management:
The consumer is requested to attend a compulsory free info talk
that is being conducted on a weekly basis. This talk explains
the various options in handling a debt problem and the common
collection actions taken by the creditors. It will also
explain the services offered by CCS so that the consumer can
self-assess and decide what he wants to do next.
Consumers are requested to register for the free info talk online.
STEP 2 – Credit
Counselling to Explore Solution:
If the consumer wished to seek further assistance after he has
attended the free info talk, he needs to collect the Counselling
Session Request Package at the end of the talk, complete and submit
it with photocopy of the necessary documents
to CCS.
After receipt of the submission, CCS will call the consumer to
set up a one-to-one counselling session for him to discuss his
situation in details with a credit counsellor.
To ensure a meaningful discussion and assessment during the
counselling session, consumer must have attended the free Info Talk
first. He must also submit all the
relevant documents and be upfront about the assets, liabilities,
income and other resources available.
To achieve a plausible solution, the consumer needs to be
open-minded to explore the various options and be prepared to make
lifestyle adjustment in resolving the debt problem.
STEP 3 – Set up a Debt
Management Programme (DMP):
At the counselling session, the counsellor will assist the consumer
to work out a monthly budget, explore options and identify the most
appropriate solution for his debt problem at the moment.
If at the end of the counselling session, both the counsellee
and his counsellor concurred that the Debt Management Programme
(DMP) is the most suitable option, CCS will then work on it,
subject to the DMP Review Committee’s approval, put it up
for the creditors’ consideration and acceptance.
A DMP is a debt repayment plan via monthly installment payment
over a reasonable time frame.
OPTIONS IN HANDLING A DEBT
PROBLEM
There are basically four options in handling a debt problem,
namely, Self Administration, Composite Settlement, Debt Management
Programme (DMP) and Bankruptcy (or via a Debt Repayment Scheme, ie
DRS).
Option 1: Self
Administration
As the name suggest, the consumers are to administer the debt
problem themselves by liaising with the creditors directly to
explain their financial plights and appeal for assistance from the
creditors (eg. request for an installment plan to repay the debt
owed).
Option 2: Composite
Settlement
The consumers may engage a licensed professional (eg. lawyer or
accountant) to make a composite offer to the creditors via a
Voluntary Arrangement. Alternatively, the consumers may also
raise the money and negotiate with the creditors directly
themselves, and appeal for a discounted lump sum settlement of the
debt.
Option 3: DMP (Debt
Management Programme)
This is an unsecured debt repayment plan via monthly installment
payment. It is put up by CCS on behalf of suitable
individuals who have the desire, determination and means to repay
the debt owed.
Option 4:
Bankruptcy
This serves as the last resort when all else fail to resolve the
debt problem. The indebted individual may either wait to be
sued by the creditors or apply for a self-file bankruptcy
petition.
When an individual is sued by a creditor for or self-filed a
bankruptcy petition, he may qualify for the Debt Repayment Scheme
(DRS, effective from 18 May 2009) if his unsecured debt
is no more than $100,000, holds a regular paying job and is
committed to make repayment in about five years.
For more information on DRS, please visit www.drs.gov.sg.
DEBT MANAGEMENT
PROGRAMME
The Debt Management Programme, known as DMP, is basically a debt
repayment plan. It is a monthly installment plan that allows
the consumers to gradually repay their unsecured debt (eg. credit
cards and overdraft), including the principal amount and interest
charges, to their creditors over a reasonable period of time.
This repayment plan is suitable for consumers who are
willing (ie, have the desire to avoid bankruptcy
and the determination to live within a discipline budget) and
able (ie, have the means) to repay the
unsecured debt that they owe.
The DMP is a voluntary arrangement between the individuals and
the creditors. In short, it is the creditors’
prerogative to offer an installment plan and to specify the terms
of the repayment.
DMP status is NOT on public record but is registered with the
Credit Bureau Singapore whose data is accessible to financial
institutions.
You Aren't Alone
Very often, consumer who has a debt problem feels very alone. He
tends to keep the debt problem to himself, not wanting anyone to
know because he may feel ashamed, silly, guilty, loss of pride or
worry about losing his job… For some married persons, they don’t
share or even dare to let the spouse know about the debt problem.
In short, many heavily-indebted individuals carry the heavy burden
alone and in silence. As a result, the debt problem grows bigger,
the stress level becomes higher, work performance is affected,
relationships turn tense and subsequently, the individual may
become depressed and suicidal thought may began to arise…
You are not alone.
Since people rarely talk about money problem, many consumers
tend to think that he is the only one who has a BIG DEBT PROBLEM!
Or that he has to handle his BIG DEBT PROBLEM himself.
You are not alone.
CCS has come across many individuals who have BIG DEBT PROBLEM
and were suffering alone and quietly until they have decided to do
something about their BIG DEBT PROBLEM. These individuals decided
to help themselves by seeking assistance from CCS; and with their
own resourcefulness, determination and discipline, they are slowly
climbing out of the debt pit and looking forward to debt-free
living.
You are not alone... CCS is here to assist.
CLIENTS
TESTIMONY
Mr Ben (in his 40s)
This is my story:
I am working as a Manager drawing a salary of S$6,000 per month. To
many people I know, this is an upper salary bracket. However, to me
this is the minimum sum required to keep my family survive. This
amount do not include allowance for food. My wife has to work to
help me make ends meet. And I only have one son who is in secondary
school now. This is because three
quarter of my salary is used to pay my credit card debts.
Sounds tough ... it was tougher two years ago when almost all
the banks who had issued me with credit cards, magnified and
spelled out the fine wordings stated in the terms and conditions
that I had earlier signed; except I must add CITIBANK who was quick
to equitably help me restructure my credit card debt to term loan.
The same banks who had for many, many years loan me the money and
treat me like VIP as a customer at the front counter had now
transferred my acounts to their Collection Dept who termed me
legally as debtor. The legal language switched from Banking Act to
Bankruptcy Act. Many are armed with willing lawyers who had
memorised the Bankruptcy Act by heart to prey on obviously
unrepresented debtor. Some of the banks employed licenced ’Tai
Long’ who are fond of offending and breaching the debtor’s privacy.
It was a very tough period for me; psychologically.
I requested the help of The Association Bank of Singapore who
directed me to Credit Counselling Singapore (CCS). The latter had
helped me mitigate the situation by summarising my expenses and
expenditure thereby showed me my financial strong and weak point.
My financial situation was dire; I can easily submit to bankruptcy
but I opt to be responsible for my debts. Now I am still struggling
to pay back my debt but at least I can see the light. Four years
more and I hope to be free of the credit card debts and bank loans
of more than S$100k.
I now prefer Debit Card.
CCS is well recognised by the government, the banks and the
courts. My advice is if you are having "credit card problems" talk
to them first.
Ms Helen (in her 30s)
As a result
of my carelessness, my little debt snowball to a huge debt of
S$100K. I was stressed when my total monthly repayment has exceeded
my monthly salary. I was really desperate for help and unable to
cope. On my own accord, I tried to approach banks, credit
cooperative etc for help, but was unsuccessful. For almost a year,
I struggled to cope with the hounds of my creditors. The feeling
was terrible. I felt insecure, helpless, hopeless, despised,
rejected and a failure.
I was overjoyed when I heard of CCS from the media. Immediately,
I called to enquire. I attended their awareness talk, counseling
and finally had my DMP worked out.
At CCS, I was treated with respect. CCS has helped me to
restructure my debts and my lifestyle. I begin to appreciate the
beauty of credit free living. Today, I am able to meet my monthly
debts repayment. My stress was gone and I have gained back my
confidence. I am now a happier person and I look forward to be debt
free soon.
Mr Patrick (in his 40s)
Hi, I am 44 yrs old. In 2002, due to cost saving plans in my
company, I was left with free time due to less O/T in my
company.
To pass the time, i resorted to gambling and in a short space of
1 and a half yrs, i chalk up a debt of more than $100k. How to pay?
In 2004, i called up the banks whom i am owing .Except for
Citibank, the rest of the bank did not respond to me. So every
month, i just paid the minimum sum. I then realise that i was not
reducing my debt at all.
Earlier this year, i read in the Sunday Times about CCS. I then
called up CCS and attended the talk at the Subordinate Courts.
Afetr i had filled up all the forms, I attended the councilling
session.I was then put on the DMP.
CCS has helped me to appeal to the banks for a lower monthly
repayment which i am able to service, of course with a lot of self
discipline. However, i know that if i am to keep my part of the
plan, i will be debt free in 6 yrs time.
Thank you CCS and especially Gillian for your help for i know that
without you, my name will be added to the bankruptcy list. Thank
you once again and will be grateful always,
Sincerely,
Patrick
Mr Leo (in his 30s)
To vent the
escalating pressures of everyday working life, I had uncontrollably
chalked up heavy investment loses (during the economic downturn)
and also indulged in impulsive spending in order to relieve the
stress. As credit was then "readily available" as a result of the
immense competition amongst the financial institutions, I had
plunged deeper and deeper into taboo of using one credit source to
cover the other. Later, as my financial burdens got heavier, partly
due to the debts’ high interest rates and also the increasing
medical/hospitalization costs of my family, I had reached the point
whereby I was having problems in meeting even the monthly minimum
sum repayments of the credit loans.
I had, on my own, tried to make genuine and sincere appeals to
all my creditor banks for a manageable repayment scheme by
explaining to them my financial situation. However, it may be
because I am not a good negotiator and also the fact that the
credit control departments of the some of the banks have generally
set their priorities to recover as much as possible in the shortest
possible period, my appeals, in the light of my adverse financial
situation, were doomed to failure. After weeks of prolonged
unsuccessful negotiations with some of the banks, a few had even
initiated legal actions against me. It was at the point of having
received legal judgments awarded against myself that I totally gave
up on any further negotiations and virtually resigned to face
bankruptcy.
It was by chance that I later came across the CCS website and
decided to give a last ditched attempt to salvage my seemingly
hopeless situation and avoid the social stigma of being a bankrupt.
I attended one of the weekly CCS briefings and was informed of the
options available and the assistance CCS can offer. Although I was
still rather apprehensive of what CCS can do in view of my
precarious situation, I nevertheless signed up for a counselling
session. After learning about my case (and the urgency involved due
to the legal suits that have already commenced), the professional
and very experienced CCS officers swung into immediate action by
swiftly contacting all my creditor banks in a desperate bid to
stave off the legal actions and negotiate for a solution that is
beneficial to both parties. Within a few weeks, CCS had managed to
draw up a Debt Management Program (DMP) agreement with all my
creditor banks and I had begun making my first installment
repayments.
My advice to people who may be in the same situation as I am, is
to give yourself a decent chance by urgently seeking expert
counselling from CCS, especially if you are sincere about
fulfilling all of your financial obligations. On your own, you may
not be able to bring your case successfully to all of your creditor
banks as you may not be technically good in negotiation. It may
also be extremely stressful in trying to deal
with a number of creditors at the same time and coping with burdens
of your
job and even perhaps your family’s growing financial
commitments.
Although I still have a long, long way to go, to repay all of my
debts, I am indeed very grateful to CCS for at least getting me to
the starting line, which I am sure I know I would not be able to on
my own.
Ms Grace (in her 30s)
I’m
currently holding an executive post with monthly gross salary of
$4,000 per month. Rightfully speaking, I should not get myself into
this financial predicament.
It all started when my second brother started to do his own
business. In the initial stage, the business was good and he did
make some profit. With this, he ventured into another business and
mixed with some ’bad company’. He started gambling the last year
and got himself stranded with debts and started borrowing money
from the loan sharks. It became a snowball situation and owed the
loan shark about S$100K.
He was not able to make his credit card payment, phone bill and
car loan. With this, I lend him my savings to pay the loan sharks
and also pay his phone bill...etc. Worst of all, he left the house
without informing us. With his ’disappear’, I had to shoulder the
household expenses, take care of my father. In the end, I couldn’t
even pay the minimum payment for all my credit cards.
Everyday, I’m receiving calls from the banks chasing for payment
and also received lawyer’s letters. At one stage, I really thought
of committing suicide as I do not know who to turn to for help.
Luckily I read about CCS from the newspapers and attended the
talk.
With CCS’ help to negotiate with the banks, they allowed me to
pay my debt using the DMP programme.
I consider myself lucky, without CCS’ help, I will be sued
bankruptcy by the banks.