Free Debt Advice – What You Must Learn
It’s difficult to know what to do when in debt, especially what company to go to for free advice. There are fee charging debt companies, companies which advise you for free but charge for the solution and debt advice charities. You should always make sure a debt advice company makes you feel comfortable and understands your problem. If you feel a debt advice company does not offer the level of empathy and care you expect then the fact the advice is free would not be a reason to go with that company. You have a choice on the debt company you choose to help you with your problem and there are lots of good companies out there. People are often worried about their debt problem and are confused by which company to trust. The problem is that there is a lack of transparency in the debt advice industry which leads to confusion and frustration. There are two types of for profit companies: the ones which charge and fee and the ones that don’t. Make a search on the below mentioned site, if you’re searching for more details regarding free debt advice.
The companies that charge can give you a bill and then leave you with your debt problem so if you take anything from this article, it’s this, never, ever pay for debt advice. Other companies that don’t charge for the advice will give you one of their debt solutions. You will generally have a choice over which debt solution you will follow. It’s important you are aware of the obligations you face when entering a debt solution. A free debt advice company will offer the debt solutions in-house to ensure they can, in some instances, make money from the debt solution itself. Most debt solutions are not paid for directly by the person in debt, instead creditors will hire the debt solution company to carry out the work.A Debt Management Plan is an affordable repayment programme set up by a debt management company. You would make one monthly contribution to a debt management company and they would liaise and pay your creditors. A debt management plan is usually for debts which will be repaid in a shorter period, such as less than five years.
It’s an informal arrangement so it can be difficult to stick to when times get tough, such as at Christmas and birthdays.A Protected Trust Deed is a legally binding agreement with your creditors where you agree to make a monthly contribution to your debt via an insolvency practitioner. One of the main benefits of a Protected Trust Deed is you can repay a minimum and the rest of the debt is written off at the end of the solution.Top tips for choosing a debt advice company.Expect customer service to be high the debt advice company should be on your side and fighting your corner. If you feel it is not, then walk away.Check the company has a consumer credit licence with the Office of Fair Trading. This is an essential element of debt advice and ensures the company has been closely scrutinised.Make sure you feel like the company is being truthful with you if not, leave.Always ask how long you will be in your debt solution, anything over eight years is unlikely to be correct for you.Never, ever, pay for debt advice. It’s so important I’ll say it again, never, ever.