Debt is a major problem, at present in the U.K. estimates are that 20 million people have serious concerns over Debt, many do not know where to go or what to do.
Debt Advice – Where to get it:
Commercial sector –
Yes they are the ones that charge, but consider this if you want to get the best advice, re your Tax Bill you are willing to pay an Accountant, if you want a Divorce you will probably end up paying a Solicitor. Professional advice does cost – but there is a reason for that.
So if you are in Debt why not apply the same criteria – remember you get what you pay for and most reputable Debt Advice companies integrate their charges within the solution and will not be charging you an upfront payment.
Do check that the company you are dealing with has the correct authorisations from The Financial Conduct Authority/O.F.T. Ask for their registration number.
Charity Sector –
Let’s look at the ‘Charity’ sector they pay a very important part in assisting those in Debt but even here all is not what is seems the majority of the ‘Charity’ sector is in fact funded by the major banks. ‘Wolves in Charge of Sheep’ as I read on another Blog.
At present they are inundated with those requiring their help and many C.A.B offices are closing, they are able to tell you what to do but struggle to actually do things for you due to resource.
Please note : Cardiff Citizens Advice has closed
So in this ‘Blog’ we hope to give you plain and simple advice on what to do and what not to do and where you can find out further information.
Debt Advice – The First Letter
First Mistake – Don’t ignore this letters, most find burying their head in the sand is the easiest option, it may work if you are an Ostrich but it won’t work for you with your creditors.
Do everything by writing don’t get dragged into telephone conversation where you will get talked into making payments you cannot afford advise your creditors that you insist they deal only by letter with you, this is a legal right.
Instigate Token Offers immediately offer anything from £1.00 to £5.00 until you are able to either asses or situation or obtain professional advice, as long as you are paying something you are at least making an effort and showing good faith.
Ask you creditors to freeze interest and charges, they don’t have to but most will.
Do not get angry try to work with them, they want a solution as much as you and remember the guy or girl at the other end is only doing their job. Keep it very professional.
Draw up an Income & Expenditure (and put your family first) what is left over is divided on a pro-rata basis to between all your creditors and send it to your creditors with your offer.
Wait for their response!
In our next blog we will offer advice on what to do next and dealing with and Debt Collectors