There are, today, previously unseen numbers of debt management companies in competition trying to offer free debt advice. These companies say they are able to give cost free no strings debt advice. The real question is are these companies are giving good value regarding the services they offer and the advice they offer?

The reality is debt advice companies are out to make a profit, this can result in ethical problems between the individual and the debt consultant. Income is generated by passing customers on to different companies or by charging setup costs from the creditors. Therefore it is difficult to understand how well such companies are really helping their customers. The biggest concern is that these debt advice organisations will actually give advice swayed by their own margins rather than offering the best option to their customers.

Debt counselling companies are controlled by the government to try and ensure they are accredited and maintain customer personal privacy. Regrettably it is impossible to properly check or understand a particular organisations motives when providing free debt advice. After the event, can a government regulator find out whether debt counselling has been provided in the best interests of the consumer or if, instead the kind of services offered were swayed by revenue for the adviser?

Getting free citezens advice can take some time. In spite of this trying out more than one company is essential for debt management. Debtors should never simply go with the first debt advice company that offers their services.

The unfortunate truth is by far the majority of customers fail to fully understand all the products with reference to debt and debt management generally. If they did understand these customers wouldn’t need the support of debt managers.

This entry was posted on Friday, August 1st, 2008 at 6:57 am and is filed under Finance Information. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.