Debt Counseling: Mohan Jayaraman

While there are not many debt doctors in India, how are their roles different from these of a credit bureau, one of whose roles is to help borrowers reduce their debt?
A good credit reporting system enabled by credit information companies (CICs) (also known as credit bureaus) offers a platform for sustainable growth of the economy by providing a positive credit environment. CICs provide consumers with access to their own credit information report upon request and help consumers protect their identity and prevent identity fraud. When lenders receive an application for a new credit card, loan or extension of credit, they usually contact the CIC for your latest Credit Information Report (CIR), among other things, before making a decision. CIR contains detailed information of your credit history, including identity information, credit accounts, loans, payments, recent enquiries. In addition, the CIR typically has a credit score, a numeric summary representation of your credit report. If you have a problem with your debt profile and your consequent credit standing, do work closely with your lender and credit counselling centres for guidance on how to tide over any temporary financial stress.

Organisations such as DISHA Financial Counselling (www.dishafc.org) or Abhay (http://www.bankofindia.co.in/english/abhaycont.aspx) provide free money advice and help you sort out your debts for free. As part of Experian's Corporate Social Responsibility, Experian conducts a consumer education program, Credit Crossroads, which highlights the importance of using credit/loans judiciously, of maintaining good credit history and how an individual can look after his/her credit history details, which you can find on http://www.experian.in/consumer/improving-your-credit-information-report.html

Consumers need to beware of credit repair companies that claim to be able to get rid of negative information from your CIR in return for a fee. In fact, some might make matters worse by encouraging you to break the law or could offer you a loan at a very high interest rate.

The views expressed are the expert's own. Send your queries to yourmoney@bsmail.in
Today, Mohan Jayaraman, managing director of Experian Credit Information Company, answers your queries