Sometimes financial problems snowball to such an extent that they become overwhelming. If your finances have got to the stage where you feel unable to cope on your own, or if you can’t reach an agreement with one or more of your creditors, the time has come to seek professional help. However, you need to be very careful about whom you approach for help.
Some organisations out there are happy to help you sort out your finances, liaise with your creditors for you, and even pay your bills on your behalf, but their help comes at a high price. Fees vary from company to company, but as a general guide they are usually not less than 15 per cent of the money they pay to your creditors on your behalf, with a minimum charge of £25 per month. This means that you will be out of pocket by at least £25 per month on top of what you pay out to your creditors – that’s an extra £300 a year – when that money could be going towards paying off your debts.
Other companies may offer you a loan so that you can consolidate all of your debts into one loan and make a single monthly repayment. Psychologically this may seem easier, but charges and terms for new loans vary, and you may find yourself paying more overall than you would have done on your individual debts. Even if you will end up paying less, there is often the temptation to increase your borrowing to include a new car or some other luxury item. All this means your debts will take longer to pay off. If you like the idea of having only one payment to make a month, there are other, less expensive ways of doing it. And there is absolutely no need to pay a company to help you get out of debt either, especially when there are organisations out there who will do the whole thing for you for free.
Getting expert help for free
Although you need to be careful when seeking outside help, that doesn’t mean the right help isn’t out there. The main thing to remember is that, if you’re in debt, you don’t have to pay a penny for professional help. At such a crucial time, when every penny counts, the last thing you should be doing is spending large sums of money that won’t go towards clearing what you owe.
The good news is that there are professional organisations out there who will give you their services for free. Some will give you advice over the telephone so that you can sort things out yourself; some will send you free brochures; and others will do everything for you, from working out your finances and liaising with your creditors to paying your bills on your behalf and even representing you in court – and they won’t charge you a penny for their help. The only money you’ll need to pay will be one monthly amount that you agree in advance, and all of it will be divided between your creditors each month. Your helpers won’t take any money for themselves, and every penny you pay will go directly towards paying off your debts. There will be no hidden charges and no ‘professional fees’.
If you are wondering how these organisations can afford to give you their help for free, the answer is simple: they are usually sponsored by large organisations, often lenders and other financial institutions, so they don’t need to get their funding from you. Here is a list of some of the organisations that will give you their help for free, along with details of the services they offer, and what you can expect when you contact them.
