How Debt Counselling Affects Your Credit Score: An Overview by AfriSkuld

The impact of debt counselling on credit scores is a critical consideration for those seeking debt assistance. AfriSkuld provides transparent information to enable you to make informed financial decisions.

What is a Credit Score?

A credit score is a numerical value assigned to you, based on your credit history and other financial behaviour. The higher the score, the more creditworthy lenders consider you.

Debt Counselling and Credit Scores: Three Key Effects

1. Temporary decline: An initial credit score reduction occurs when you apply, as accounts are marked "under negotiation".
2. Long-term improvement: Adhering to restructured payment plans builds a positive payment history that improves your score over time.
3. Damage prevention: Counselling prevents late payments and defaults that can damage your score far more than the temporary initial decline.

AfriSkuld Services

AfriSkuld offers debt consolidation enabling single affordable monthly payments, reduced interest rates and simplified payment plans.

How to Choose a Reliable Counsellor

• Investigate the company's reputation and NCR registration.
• Compare rates and services thoroughly.
• Request a free consultation before committing.

Although debt counselling may temporarily affect your credit score, the long-term financial health benefits are worth it. Contact AfriSkuld for a free assessment and begin your journey to debt freedom.