Debt advice that may leave you owing even more money
People are increasingly falling behind on credit card repayments, so here's the best way to get debt advice.
Rising expenses are causing more individuals to fall behind on credit card payments, leading lenders to anticipate a surge in unpaid debts this autumn. Consequently, demand for debt advice is expected to increase. However, caution is advised when seeking assistance. Numerous quick-fix solutions tempting those facing financial strain, typically found on social media and search engines, may actually carry hidden costs and unrealistic promises.
Cold calls and WhatsApp messages also appear promising but could be deceptive. To navigate this, impartial, authorized debt advice is free and readily accessible through government-backed resources like Moneyhelper. It's crucial to verify a firm's authorization by the Financial Conduct Authority (FCA) and cross-check details with the FCA register.
If unsatisfied with the service, complaints can be lodged with the Financial Ombudsman Service. Alison Walters, FCA's director of consumer finance, emphasized that individuals need advice prioritizing their interests, and free, impartial assistance is available to all. However, some unregulated firms exploit vulnerable individuals by impersonating charities or collectors and then charging fees for ineffective solutions.
Warning signs include aggressive tactics like repeated contact and pressure to agree to a debt solution, often steering individuals towards expensive options like IVAs or structured debt plans. To avoid such pitfalls, seeking comprehensive, free, and impartial debt advice before making any decisions is highly recommended. Vikki Brownridge, CEO of debt charity StepChange, stressed the importance of exploring all options to clear debt in the most sustainable manner before finalizing any plans.
Written by urgent.news from BBC Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
