When to Choose a Fee Charging Organisation
- arguably, if your debt problem is £15,000 or less and you are considering an
informal repayment plan, then there is little sense in approaching a
fee
charging organisation when an organisation such as the CCCS will do an excellent
job for free.
However, trying to solve more serious debts (ie £15,000 +) using an informal
plan just because it is free is very often not the best solution. The problem is
that with such a plan, you must still repay all of your debt. This will mean
that you will be repaying your debt for many years and there is no light at the
end of the tunnel. In these circumstances, there is no incentive for you to
continue to struggle to repay your debt and invariably you will fail to do so
which will do nobody any good. In these circumstances, you would probably
be better off considering a formal plan such as an
IVA or
Bankruptcy. In order to undertake an IVA you
will need to use a fee charging organisation. However, the total repayment you
make within such a plan including all fees is likely to be less that the total
balance of your debt....
What to look for in a Fee Charging Organisation - you should speak to an organisation who is prepared to counsel you on the
full range of debt management options available. They should be able to fully
understand your circumstances either on the phone or through a face to face
meeting (face to face is always recommended). Then they should talk to you about
the full range of debt solutions available (both formal and informal) and the
pros and cons of each. In this way, you will be able to make and an informed
judgement about the correct solution for you. For further advice regarding IVAs and
other debt repayment solutions either on the telephone or face to face, we
suggest that you speak to our recommended debt advice company called
Thomas Charles.
