There are three rules for entering a debt management solution and we've listed them in our CCC debt management process. The Three-C's of debt management (CCC Debt Management) include
CCC Debt Management: Complete advice
You should always ensure you are receiving complete advice. This means completing a full income and expenditure taking between 15 and 30 minutes. The income and expenditure would include taking any income (pay, child tax credits etc) into account. Your expenditure would include your rent/ mortgage, gas, electricity, council tax, telephone bills etc.
Anybody providing debt advice which meets the CCC debt management process should also review your assets. If you have equity within your property then this must be taken into account too. Any equity would potentially need to be included within your solution. If you equity is low or you have negative equity then you will not have any available equity to contribute and you will be able to keep your house.
Finally, complete debt advice should review which creditors you owe money to, how much you owe each creditor and how much your current contractual payments are. Once this information has been completely gathered a debt advice charity can determine what debt solutions you are applicable for. Only after gathering your financial statement should you receive debt advice.
CCC Debt Management: be Clear
The advice you receive should be clear to meet the CCC debt management process. Any debt advice charity should explain all available debt solutions and detail the pros and cons of each debt solution. The pros and cons should include the length of time you will be in the debt solution, the fees involved, what will happen to your assets and whether your credit rating will be affected.
If you don't understand anything you are being explained, ask the advisor to go over the solution again. It's important you understand and are clear on each debt solution.
CCC Debt Management: be Careful
The final piece of advice for anybody entering seeking debt advice is to be careful. Some debt solution companies will charge you for their services. You can get free debt advice and debt management plans from a variety of organisations. If you would prefer face to face advice we recommend the Citizens Advice Bureau.
CCC Debt Help
Debt Support Trust follows our Complete, Clear and Careful process for anybody struggling with debt. You can receive debt help from Debt Support Trust by telephoning 0800 085 0226 or visit our contact us page.