Debt Advice Agency CCCS Warns of Increase in Personal Debt

Debt Advice Agency

CCCS and other debt advice agencies, including the Citizens Advice Bureau, have already seen a rise in the number of clients seeking debt help as companies, in response to difficult current economic conditions, implement overtime bans and cut workers’ hours.

One of the most important pieces of advice offered by the Consumer Credit Counselling Service and the Citizens Advice Bureau is that those struggling to pay their debt shout not turn to fee-charging companies for help.

 

A recent review carried out by the Office of Fair Trading (OFT) into debt advice firms has concluded that, “consumers in difficulty often seek debt advice in desperation.” The report continues by pointing out that as well as fee-charging debt management companies there are also a number of government and charitable organisations, which provide a range of free debt advice to the consumer.

The OFT continue by saying that, “regardless of what type of debt advice a consumer turns to it is important they receive the advice and solution most suitable for their personal circumstances.” The OFT also makes it very clear that the, “potential for large amounts of profit to be generated by the commercial sector creates a risk of abuse.”

Debt Remedy from CCCS

Because of the huge rise in face-to-face debt advice CCCS has introduced an online Debt Remedy, which allows the consumer, while protecting their anonymity during this stage of the process, to receive free and independent debt advice from trained debt counsellors.

Problem Debt

Debt Remedy, a customised solution for each case of problem debt, is based on the financial information given by the debtor, so it’s very important to be honest about all money owed. It is of course up to the individual whether or not to accept the advice and carry forward their personalised Debt Remedy solution.

A number of possible solutions are available for those who find themselves in debt. For example a debt advisor will almost certainly discuss the following strategies with their clients:

  • Negotiate a freeze on interest with creditors
  • Debt Management Plan
  • Debt Relief Order
  • Individual Voluntary Arrangement (IVA)
  • Protected Trust Deed (Scotland)
  • Personal Bankruptcy.

Sources of Debt Help

The UK government website Directgov (Direct.gov.uk) offers advice on a range of consumer-related subjects including debt management and have recommended the organisations listed below as places where free and independent debt advice is available.

  • Consumer Credit Counselling Service (CCCS)
  • National Debtline
  • Citizens Advice Bureau.

The information in this article is obtained from the reputable sources listed below and is offered in good faith. However like all financial decisions it’s important to seek appropriate advice.

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