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Become Debt Free - Debt Counselling Options

Introduction - if you would like to become debt free and eliminate debt and need to get counselling, advice and help, there are various organisations in the UK who you could approach. The main question is who to talk to get the best advice. Broadly speaking there are two different types of debt free counseling organisations. Those who provide free services and those who make a charge. The best organisation to approach will depend very much on your financial situation and the type of debt problem you have.

 

 

No Charge Counselling VS FEE Charging ORGANISATIONS - if you have total unsecured debts of £15,000 or less, or based on your Disposable Income, you think you can repay your debt in 5 years or less, then it is likely that you should consider an Informal Repayment Plan. You should be able to get good advice and help regarding this from a counseling service such as the CAB or CCCS.

 

If you have total unsecured debts of more than £15,000, it is likely that you will not be able to eliminate debt within 5 years. This being the case, then in order to solve the problem and avoid repaying your debt for ever, you should perhaps consider a more formal solution such as an IVA or Bankruptcy. Formal agreements such as IVAs can only be put in place by specialist Fee Charging organisations. However, the total amount of payments that you make (including fees) will almost certainly be less that the total amount of your debt.