Debt Consolidation is not the Only Alternative!
Debt Counselling Could
Be Expensive
Debt management services are supposed to provide assistance and advice to help
the debtor deal with the debt issues effectively and efficiently. But instances
have been reported, wherein consumers have doubted the efficacy of debt
management services and thus debt counseling. The argument is presented to claim
that debt management services, instead of facilitating and promoting better debt
administration, by way of their pricey features have escalated the issues. Well,
if considered closely, the stated could be quite true, especially with the
proliferation of self proclaimed debt counseling experts in UK.
Debt management services, quite rapidly have drifted from their initial
definition of voluntary assistance to the present terms of profit making. Debt
management services now are a very established business, governed with the
motive of making money. Like all commercial setups, debt counseling providers,
deploy various marketing strategies and thus make every attempt to extract as
much as they can from the naïve customers. In such circumstances, it wouldn’t be
actually completely unfair to treat debt management services as an expense.
So Should Debt Management Services be Avoided ?
The stated might present a scenario wherein debtors would be advised to stay away from debt counseling service providers. However, this not essentially, what this article aims at. The idea is to provide selection guidelines and procedural tips while selecting or working with any of those who provide debt management services and thus deal with the mounting debt issues.
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Maintain your own records – The promotional taglines of companies providing debt management services often suggest to forget all debt problems and just pay a monthly installment to the company. Please do not follow this statement. Debt is your problem and the money you pay every month towards tackling the issue, by way of debt management programs, is equally valuable. Hence, instead of forgetting the issue, after availing debt management services, keep precise accounts of what the company is paying on your behalf and to whom. If required check with creditors on the amounts paid.
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Be wary of free / non profit debt management services listings – Prevalent commercial settings leave little scope for extension of free services in any domain including debt counseling. And therefore is anybody says so, check again. In an attempt to find cheaper providers, do not provide any important info like account details or credit card details over phone or mail.
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Select carefully – While seeking debt counseling services, do not just hire the provider with the most fancy statements or outlook, instead check on all of the below mentioned aspects:
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Detailed service description o Relevant licenses and permissions to operate o Formal agreement clauses and any other memorandum of understanding.
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Counselor’s background and proficiency as your assistant.
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Past performance and consumer feedback – to include market reputation of the firm providing debt management services.
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Fees / hidden costs breakup Any negligence in finding out the above stated info might pose serious repercussions in times to come.
Debt Counselling Articles:
What to do if you are getting into financial difficulty
Debt Management Services
How to be Debt Free
Will an IVA be Right
For You?