If repayments undermine food, rent or medical needs, you do not need to select a restructuring method before seeking help. Start with a complete debt and household-needs record for assessment.
What to have ready
Current service, eligibility and entry point
IFEC advises approaching lenders promptly when repayment becomes difficult and lists debt counselling through Tung Wah's Healthy Budgeting Family Debt Counselling Centre on 2548 0803 and Caritas Family Crisis Support Centre on 18288. These are counselling and assessment routes, not a government cash benefit guaranteeing debt clearance.
Deferral, restructuring or interest arrangements depend on discussion with the lender. An individual voluntary arrangement involves a formal proposal and creditor approval and may require professional advice; a phone enquiry does not suspend all collection. Debt, income and property must be disclosed accurately in the applicable process.
From enquiry to follow-up
- List balances, instalments, security, arrears and next due dates, separately recording actual income and food, housing, care and medical costs. Retain bank and collection notices by date. Mark missing figures for checking instead of supplying an estimated total that hides an important creditor or secured obligation.
- Explain difficulties through the lender's official channel early and ask about assessment and evidence. For any proposed terms, request total cost, duration, interest and fees rather than judging only the new monthly amount. Save the agreed wording and follow the confirmed arrangement, not a presumed verbal concession.
- Contact recognised counselling with the complete list and budget, asking about options and consequences. Consolidation can reduce instalments while extending repayment or increasing total cost, and security can put assets at risk. Do not pay an unknown intermediary a large fee merely to gain supposed access to help.
- Record the next due dates, payments still required and unresolved points after discussion, and report changed circumstances. Fraud, intimidation and legal papers need their appropriate banking, police or legal response. An ordinary counselling appointment does not replace compliance with a deadline on court documents.
Limits to understand before applying
There is no universal rule cancelling debts because of hardship, and low income alone is not an MPF early-withdrawal ground. Check each arrangement's conditions and consequences. Moving the balance to another card does not establish that the underlying repayment problem has been resolved.
Food or family support enquiries can run alongside debt counselling, but benefit assessment and credit contracts are separate processes. When applying for other help, disclose required income, assets, obligations and existing support accurately rather than concealing accounts and creating contradictory financial records.
A practical support example
A household struggling with three loans lists next week's due dates and essential costs, then asks each lender for a written proposal while taking the same sheet to counselling. Lower monthly payments are compared with total repayment and any new security before an arrangement is judged suitable.
Start with complete debts and living needs, then discuss promptly and seek recognised counselling.
Official information and enquiries
These are the reference and service entry points for this guide. Check current fees, eligibility, and schedules with the authority. The preparation date is not each source's official update date.