A Debt Free Life For 2007
It may be too soon to think about New Year resolutions - but those credit card bills will be landing on your doormat very soon!
Depressing though it is, the free debt-help agencies are already gearing up for a plethora of phone calls from desperate debtors next month. And we haven't even got Christmas out of the way yet!
I'd be willing to bet that while this week is a time for spending and that next week will begin with lots of jollity, by the end of the month, regret and guilt will have set in. By the time we ring the bells to bring in the New Year, a significant number of people will be worrying about the arrival of their next credit card bill. Oh, how we love Christmas!
Just in case you suspect you may be among 'The Worried' next month, then bear in mind that help is at hand. Consider it a New Year's resolution -- that 2007 will be the year that you get your debts sorted out and that you get back on track for a better financial future.
So, come January, who are you going to contact for help? You have several options:
The thing to bear in mind is that Citizens' Advice consists of a collection of local charities so the knowledge and abilities of their volunteers in each area varies widely. If your local CAB has a debt specialist, then you are likely to get excellent advice and help. But if they don't have a specialist on hand, then you might want to look elsewhere.
Consumer Credit Counselling Service
This organisation is sponsored by the credit industry itself. They, therefore, 'pay' the CCCS a percentage of the debt they recover on their behalf. As a result, the CCCS have enough clout to make a difference since they can persuade their 'sponsors' to accept low or interest-free debt repayment plans.
They are also a 'hands-on' organisation which will negotiate on your behalf and collect a monthly payment from you to distribute amongst your creditors
Payplan has a sister organisation which deals with Individual Voluntary Arrangements (a lucrative market) so one might imagine that they have a hidden agenda in offering to help people in debt.
However, the experience of Fools who have used them seems to be a healthy one and, these days, Payplan is also funded by the credit industry. They will help you set up a debt management plan and will only point you towards an IVA or bankruptcy if it's truly your only option.
This is a telephone self-help service which provides advice to its callers and also produces written self-help packs and factsheets to back this up. Although they will help you set up a debt management plan, they won't do all the work for you -- they'll just point you in the right direction.
The important thing is to make sure you opt for free debt help. There are loads of so-called debt-help organisations that charge a fortune for helping you to get out of debt when your money would be better used towards paying off what you actually owe!
Check out our Get Out of Debt centre.
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