The Things You Need To Be Careful Of When Seeking Debt Advice;-
Some debt advice firms make statements that are misleading when used in the marketing, advertising and promotion (across all media types including websites) of debt management solutions.
Statements used in the marketing, advertising and promotion (across all media types including websites) of debt management solutions need to be specific and clear as to what solution they apply to. Failure to do so constitutes a breach of OFT debt management guidance. An example would be where a business which offers DMPs uses statements that are normally associated with the promotion of IVAs. Whilst those statements may be correct in terms of an IVA, they are misleading because they could give consumers the impression that they would apply to other debt management solutions.
- Beware of adverts promising drastically reduced monthly payments!!
Debt management firms advertising "Lower Your Monthly Payments By 30% to 50%"
What this actually means is that by lowering your monthly obligation can be done depending on your particular mix of creditors, however a drastic reduction in the monthly obligation must be submitted to the creditor as a "hardship" and this will ruin your credit!!
- Debt management firms that quote payoff times!!
When you ask the debt management firm how long will it take to pay off what you owe, if the company gives you an answer like "4 years" or "52 months" you are probably dealing with a salesman not a dedicated adviser who really cares.
- Are you having planning on applying for a mortgage in the
future?
If you are planning on applying for a mortgage anytime in the near future, it is EXTREMELY IMPORTANT that you let us advise you on how to handle your consolidation or you may end up waiting years before getting your new home. Watch out for debt consolidation and remortgage companies that do nothing but jeopardize your ability to get the credit.
IVA's
The IVA Guide
Money Advice Direct has put together an IVA Guide based on the enquiries and questions that we receive at our helpline offices.
In the guide we cover such subjects as IVA Approval, early settlment of your IVA, missed IVA payments, IVA failure, additional debt claims and much more.
[click here for IVA Guide]
What is an IVA?
The IVA is an extremely powerful tool enabling you to clear your debt and return to a clean financial bill of health. Visit Money Advice Direct's Guide to Individual Voluntary Arrangements (IVAs).
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DANGER
Due to the tremendous demand for debt consolidation services the United Kingdom is now overloaded with debt management companies that contain misleading information. [more...]