Debt Advice by the shedload; what’s good and what isn’t?

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].