If you’re in debt, and considering looking for debt help, it’s important to make sure you get the right kind of help. It’s true, that the right debt help from the right debt adviser, can help you get out of debt, but at the same time, poor advice could mean you end up staying in debt. It could even make your situation a lot worse.
So, how do you know what the ‘wrong’ debt help is, and how can you avoid it?
The ‘wrong debt solution’
Different debt solutions will suit different people, depending on their financial situation. For example:
- If you have £8,000 of unsecured debts, then a debt management plan could be the best way for you to address your debt – however…
- If you are a homeowner, and have around £50,000 of unsecured debts, then an IVA (Individual Voluntary Arrangement) could be the best option for you – however…
- If you’re a tenant with the same amount of debt (£50,000), you may find that bankruptcy is your best option.
Taking the examples above into consideration, it’s clear to see that talking to a professional debt adviser is vital, before seriously considering any form of debt solution.
The right debt adviser will understand the various options that may be open to you. They’ll be able to advise you on which is the right way for you to get out of debt, and able to talk you through the pros and cons of that approach.
The ‘wrong debt help’
Obvious as it may sound, you should avoid ‘loan sharks’ at all costs as they are unlicensed lenders. By definition, this means they are on the wrong side of the law. Regardless of how bad your financial circumstances may be, there has to be another way out.
The ‘wrong debt advice’
Anyone can mislead you by mistake. Friends, and family are there for you to talk to, but the way that they got out of debt might not be relevant to you, as your situation may be very different. That’s just one reason it’s a good idea to talk to a professional debt adviser.