The web is full of debt management advice, some of which is genuine and some of which
is little more than advertising for one debt management firm or another.
Filtering out the good from the bad looks
daunting.
When it comes to companies advertising, the
thing to look for at the top of their website is the DEMSA [Debt Managers’
Standards Association] symbol. There may
be other awards shown including the Trading Standards triangle of approved companies,
but it’s the DEMSA one which counts. Many companies will give free advice in
the hopes that you will pick them to manage your debt. Free advice is always good, but make sure the
advice is free because there are
companies out there which do their best to fool the unwary web browser into
thinking that they are charities when in fact, they are not.
To be absolutely certain of getting free,
impartial debt management advice, it
is best to consult a charity like the Citizens’ Advice Bureau.
Other charities include StepChange, the
Debt Advice Foundation, Christians Against Poverty and others. There are others
available to consult, including a charity to help with advice to small
businesses and the self-employed that have fallen into debt.
Government sponsored schemes include the
National Debtline and, for those people who qualify for legal aid, Civil Legal
Advice [formerly Community Legal Advice] though this last is not available in
Scotland.
The best debt management advice of course is don’t get into debt; but in the
modern economic climate this is rarely a practical option. However it is possible to manage debt before
borrowing by saving as much as possible before borrowing, and making sure you
know exactly how much is coming in; and how much is going to be going out on
repayments. It sounds simple, but too
many people seem to rush into borrowing without considering the long term
implications; and too many financial institutions have been willing to lend profligately. Also simple is the idea of shopping around
for a loan. Very few people would
purchase white goods without comparisons of brands and stores; yet there is
less tendency to shop around the financial institutions that offer loans.
Having once got into debt, and preferably
before getting into trouble, it is as well to research your rights as a
debtor. The Office of Fair Trading issue
a 66 page advisory document to creditors; whilst not quite debt management advice as such it is certainly debtor rights advice within the guidelines to creditors.
Having got into debt, payment of debts
should be prioritised, and the most important considered first. Most Debt
Management Advice bodies or pages
will help you to find out which debts should be given priority.
Perhaps the most important debt management advice is to do something
positive before you find court orders and repossessions tumbling about your
ears; there are debt management plans
available to permit you to make arrangements that are mutually beneficial to
you and your creditor[s].
