Last week, It was reported in a major newspaper that people are entering debt solutions without fully being aware of the positives and negatives of the debt solution. It was also suggested that people are not provided with every debt solution, leading some organisations to believe that the advice being provided was not reliable debt advice.

Receiving reliable debt advice is based on the type of organisation you select. For instance, if you select a free debt advice charity like Debt Support Trust or the Citizens Advice Bureau you will get help to understand which debt solutions are suitable for you, the pros and cons of entering the solution and what can happen in the future as a result. You receive complete debt advice and you are then empowered with the information to make an informed decision on your future.

Often there is more than one debt solution available for you and it’s important you are given the choice over which solution you wish to enter to resolve your debt problem. A reliable debt advice agency will balance your options, whereas you may find you are almost ‘sold’ a solution with organisations where they can benefit financially by your decision.

Debt Checklist

We would recommend answering the following list of questions to determine if you have been given complete debt advice:

–          Have you been offered more than one debt solution, if not, has it been explained why other debt solutions would not be applicable?

–          Do you fully understand how the solutions would work?

–          If applicable, do you know if assets like your house or car will be affected?

–          Do you know the pros and cons of each solution?

–          Do you know if the organisation you are speaking to will benefit financial out of the solution you enter?

–          Have you spoken to different agencies, including at least one charity to ensure the advice is the same?

–          Do you know what implications the suggested debt solution will have on your job, your bank account, your credit file and the ability to get credit in the future?