When you speak to a debt advice agency you hope to get crystal clear guidance on which solution is best for your circumstances. Unfortunately, what one organisation will advise could be different to another. When you can't get a definitive answer to your debt problem it's often frustrating and worrying and can leave you more confused than enlightened by the advice. Debt solutions can help you find financial freedom once again, however what happens when you're given conflicting debt advice?
When someone takes the brave step to resolve their debt by contacting a debt advice organisation they want a straightforward answer to their debt problem. If you speak to multiple advisers you may get different answers and there's a variety of reasons, which we'll discuss, for this.
So, how can someone make a decision about which debt solution is best for them when they are given multiple choices and not enough information?
What Is Conflicting Debt Advice?
Conflicting debt advice can happen when someone is suitable for more than one debt solution. What should happen with any regulated debt advice organisation is that a statement of affairs is gathered, which includes your monthly income, expenditure, assets, liabilities and a list of debts. From there, we can determine what you can afford to pay towards your debt each month. It's at that stage that some debt advisory companies will give advice based solely on the facts at that point. If you've got multiple options but a debt adviser (or their firm) favours one solution over another, then you may not be given all the applicable options.
People will often tell us they have been advised by one debt advice organisation they are suitable for a specific debt solution and are shocked when told they are also suitable for another. At Debt Support Trust, we go through a process of "getting to know you" with the intention of understanding not just your financial situation but also your personal circumstances. This helps us understand if you're likely to have a salary increase over the next few years or if your circumstances could change. It's at this point we would explain which debt solutions are appropriate for you. We explain which options are available, the positives and negatives to each option and empower you with information so you're able to make an informed choice. We often explain which debt solutions are not applicable and why we believe this.
By going through this process it helps ensure we have a full picture how you would like to resolve your debt, what's important to you and we can make accurate recommendations based on the information.
Some people want to pay their debt back in full, others don't want their credit rating to be affected and some people are likely to inherit money in the near future - all of which can impact on which debt solutions are applicable. Our role is to provide the information and help you decide which options are most suited for your needs. We can discuss ideas you may have to become debt free and explain any pitfalls to the plan, which you may not have considered.
It's ultimately your decision as to which debt solution you choose, but having all the information is extremely important so you can feel confident about deciding which route is best for you.
Why Is There Conflicting Debt Advice?
Debt solutions exist to help people in financial difficulty, but the correct debt solution depends on a person's personal and financial circumstances. There are various reasons you may receive differing debt advice.
You may be applicable for more than one debt solution. For instance, If your unsecured debt was £12,000 and you could afford £150 per month towards your debt, then you may consider - or be advised - on an IVA. This would see you, typically, debt free in 5 years and repaying £9,000 of the debt over 60 months. You may also be advised to enter a debt management plan where you repay all of the debt and this would last just over 6.5 years if interest and charges were to be frozen. It's at this stage where we would learn more about you and your intentions before explaining the positives and negatives of all debt options.
Another reason that you could receive conflicting debt advice is that some companies may only specialise in one debt solution. Some companies have a licence to provide debt management solutions and they will advise a debt management plan is the best option. This isn't always the right advice and consequently when you speak to another debt adviser they recommend a different solution.
It's important that both personal and financial circumstances are taken into account when deciding which debt solution is best. It's possible that a debt solution could affect someone's job or housing situation - although this is rare - so it's worth being aware of the consequences of each solution.
Find Out All Your Options
Have you had conflicting debt advice and would like to get a better understanding of which debt solution would be best for you? Perhaps you're interested to get a second option on advice you've already received?
You can speak to a friendly, trained debt expert at Debt Support Trust today on 0800 085 0226 or alternatively contact us using our online form and we will be in touch at a time which best suits you.
We take the time to assess not only your financial circumstances but also your personal situation, because both are important when advising on your financial future.