Such susceptibility could also arise from unforeseen shocks or emergencies that make repayment difficult. By providing sound advice to arrest the deterioration of incomes and restructure their debt, credit counselling offers a meaningful solution for borrowers to gradually overcome their debt burden and improve their money management skills.
In this regard, the question is whether there is a role for public policy in matters relating to credit counselling? We must recognise that financial intermediaries, the corporates and high net worth individuals generally possess in-house knowledge of matters relating to financial management and can afford to employ outside expertise as appropriate in regard to their investment decision and management of distressed loans.