Debt Solutions

Debt Solutions – whats out there?

There are many different types of organisations and firms that can provide debt advice. BUT it is important to ensure that people who have debt problems receive the right type of debt advice. One place you can find a list of debt management companies is www.freeindex.com.

This site is that not only does it list the companies but also lets you read reviews on debt management companies. (click here for an example of debt management companies.)

Dont they all give you the right type of debt advice?

You would think so but I have heard some horror stories from friends of mine who have been “pursuaded” to got down the wrong debt solutions route.

Examples:

  • Over the past few years many people with debts have been persuaded by both TV/Radio advertising and by salesman to convert their debts into a loan secured on their home. (what we know as Debt Consolidation). In many instances this has been inappropriate advice and in some cases people have lost their homes as a result.
  • Equally persuasive has been the promotion of IVAs. Again, unfortunately they have proved to work in a minor number of cases.
  • Some debt managers only deal with consumer credit debt and ignore the problems of mortgage/ rent arrears, not to mention council tax and utility bills. (i’ll talk about that later)

Debt Solutions – a minefield

All these methods can be viable options for debtors but only when used in the right context. In some instances more than one method may need to be employed. It is also important to ensure that anyone giving advice or acting on behalf of a debtor does so in the best interests of the debtor. Some such organisations are effectively (shock horror) funded by debt collection agencies.

so who do you what debt solution do you trust?

obviously it is important to research debt solutions. thoroughly. Look for a firm that has a track record of fighting effectively for debtors and who take the broadest possible view of a debtor’s problems. DONT BE AFRAID TO ASK THEM (remember you are the client). look for ones who use all the alternatives available to help people with all types of debt problems.

 

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DISCLAIMER: The information provided here should only be treated as a guideline. I strongly recommend that you consult with a debt professional who is able to discuss with you fully your situation and who is able to analyse your particular circumstances.

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~ by debthelpsolutions on August 20, 2008.

2 Responses to “Debt Solutions”

  1. You can always negotiate your terms with debt consolidation companies but its best to consider all your options before taking the plunge. Thanks for the info!

  2. Thanks for your Comment – you have raise a major issue.

    however,much or the pain in the sub prime industry has been caused by people effective consolidating their debtand securing it on their houses, and/or using the equity in their houses to maintain an unsustainable standard of living.

    Either way The effect is the same.

    If you are in debt – why pay interest on your debt unnessarily which is exactly what you are doing when you consolidat your debts?

    Why not let the creditors take the painof the interest, which is what they have to do in well run debt management programs.

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