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When to Choose a Fee Charging Organisation - arguably, if your debt problem is Ł15,000 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 Ł15,000 +) 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.

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