When experiencing financial difficulty, it’s best to reach out for support as soon as you can. However, there are a lot of options out there! So how do you make the right choice when looking for debt advice?
When searching for debt advice:
1. Check the Interest rate on any loans offered by organisations
If a company is promising one loan to cover all your existing loans, check the interest rate. If it seems too good to be true, it probably is. You might have to pay back a lot more than you borrowed. This is with high interest rates added onto the loan that can be double or treble the money you borrowed. Look out for really high interest rates, as this will make your financial difficulty worse. These people could also be loan sharks and can be very dangerous. If you are a victim of a loan shark:
2. Try to avoid public opinion
Reaching out to family or friends to talk about financial worries can be really helpful. However, the financial advice they might give is not always accurate. This is the same when reading about financial advice on social media. Always seek professional guidance.
3. Avoid websites and companies that are asking for payments for financial advice.
Many places offer free and non-judgemental debt advice. You do not need to pay for support. For example:
Or email the Homes and Money Hub, especially if you are struggling with council debts. homesandmoneyhub@lbbd.gov.uk
4. If you meet with a debt advisor, check they are qualified.
They should be credited by the Financial Conduct Authority (FCA) and you can ask a qualified debt advisor for proof of this.
Try and be open and communicate honestly with your debt advisor when you seek financial guidance.
Once you have reached out to a qualified debt advisor this is what you should expect:
One of the first steps will be a review of your debts, your income and your outgoings. The advisor wants to get a full financial picture so they can help you in the best possible way.
They will then do several things depending on your situation. They may:
- Look at budgeting tools with you.
- They might look at how much you are spending on bills, and how to reduce those costs.
- They can refer you to any other helpful support.
- They will make sure you are claiming any benefits you are eligible for.
- They will negotiate with companies that you owe money to, so you can make affordable repayments.
It is important to remember that no matter your financial situation it is never too late to get professional support. Please reach out to one of these organisations to make an appointment today.