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FREE COUNSELING SERVICES......

1) The National Association of Citizens Advice Bureaux (CAB) - The CAB provide a wide range of debt counseling services for a vast range of different personal problems. The extent to which your local CAB office will be able to provide debt counseling and advice will depend on the available resource at the local office. Generally the CAB will be able offer you the opportunity to site down with a counsellor and discuss your financial situation. They will be able to help you calculate your disposable income so you can identify how much you can afford to pay to your creditors each month.

When Should I Use The CAB? - This debt counseling solution can be ideal for people who have less serious unsecured debt. For example if your total debt is Ł15,000 or less, it is likely that by using an Informal Payment Plan you will be able to repay your debt within 5 years. If your debts are greater than Ł15,000 then paying a reduced amount each month through an informal plan will almost certainly mean that the length of time it take you to repay your debt will be significantly longer. If this is the case, then you may be advised to consider a more formal agreement such as an IVA with your creditors.

2) The Consumer Credit Counselling Service (CCCS) - the CCCS provides specific debt counselling and advice for people with debt problems. The CCCS has charitable status and as such is a not for profit organisation. The CCCS is funded and paid for entirely by the credit industry (ie a number of different banking organisations). In the same way as the CAB, the CCCS will help you understand your financial situation and then help you to implement an Informal Repayment Plan with your creditors.

If your debts are greater than Ł15,000 then paying a reduced amount each month through an informal plan will almost certainly mean that the length of time it take you to repay your debt will be significantly longer. If this is the case, then you may be advised to consider a more formal agreement such as an IVA with your creditors. The CCCS will not be able to offer this type of solution.

3) The National Debt Help Line - is a national telephone helpline for people with debt problems. The service is free, confidential and independent. Your call is answered and you can discuss your debt problems with one of the advisors.