Getting Help to Get Out of Debt

A couple of days ago Geoffrey began to talk about dealing with debt, and he'll be writing more about negotiating with creditors, differentiating between priority and non-priority creditors, and handling various other aspects of this problem over the next few days. If you need to read what he has already said, then you can find it archived in September at "Dealing with Debt".

However, whilst the initial system Geoffrey recommended is simple and straightforward, works just as well whether you have two or twenty-two creditors, and can help you to feel that you have some measure of control over what's happening, the idea of dealing with a mountain of debt - constructing a complete and accurate statement of your affairs, and handling the correspondence involved - can be so stressful, depressing, and frightening that many people find that they just can't do it by themselves.

You can get outside help to get out of debt - but you shouldn't be tempted to pay for it.

There are lots of companies advertising that they can help you solve your problems, but all of those companies want money - sometimes large amounts of money - and many of them make unsubstantiated claims. The Ministry of Justice Claims Regulator has already put a hundred such companies out of business for fraud, disregarding the rules, persistently making misleading claims, and encouraging people to hand over fees on the strength of high pressure cold colds from marketing centres. You can read the complete story by using the search box at Ministry of Justice Claims Regulation .

If you have been approached by any company offering the promise of wiping out your debts by challenging their enforceability, top tips from the Ministry of Justice Claims Registration are:

DON’T be pressurised into making any on-the-spot decisions – take time to consider your options.

DON’T hand money over there and then – get full written information from the business about the service they are offering, what it will cost and the time it will take before paying anything. The business is required to provide this.

DO contact an independent adviser – such as Citizens Advice, who can advise you on the best way to deal with financial problem and complaints.

DO check that the claims company is registered at the Claims Management Regulation website – if it provides debt advice services it is likely to also need a consumer credit licence issued by the Office of Fair Trading, check the Office of Fair Trading's Public Register.

DO report any concerns you may have about a business, by email or by calling the claims management anonymous reporting hotline line on 0333 200 0110.

Our advice is to avoid people who claim that they can get your credit cards written off within six weeks, state that 80% of credit agreements are unenforceable, or that they can write off all your outstanding debt.

This is really the equivalent of a free lunch, and we all know know that there really isn't any such thing. If you need help, go to your local Citizens Advice Bureau . The Citizens Advice Bureau can help you to negotiate with your creditors. It's safe - and it's free.

Emily, Geoffrey & Bill