Tuesday, 16 June 2009

Credit Counseling Companies

posted by debts.org at 01:39

Credit counsellors are forced to turn desperate consumers away because they are unable to cope with the scale of the economic crisis.

Consumers have been turning to professional debt advisers in increasing numbers since the recession went into overdrive towards the end of last year. Job cuts, redundancy rumours and business closures has put huge numbers of consumers on the bread line – it’s estimated that one third of mortgages are in arrears by at least one month.

Even for those who have so far managed to escape redundancy, creeping insecurity has forced many to turn to credit counselling companies.

Milva Gaudiosi a debt adviser at Debts.org said: “Debt charities cannot single-handedly deal with the amount of people needing urgent help with their finances. People are now coming to other debt companies, such as us, for credit negotiation services. We are negotiating with creditors for lower repayments as part of a Debt Management Plan – one of the most sought after debt solutions.”

Britain’s consumers have been forced to change the way they handle their finances and for many the days of ‘shop ‘til you drop’ are over. Commentators across all forms of media have been in unison when saying the consumer generation is in demise. It is a bitter pill to swallow, but debt reduction programmes such as a DMP are forcing many people to take a more responsible approach to money. For others, bankruptcy and repossession are sadly unavoidable.

“It’s clear that a change in the way people handle their finances has come too late for many, and there is no telling how long it will take until we see the actual result of this recession,” said Gaudiosi. “The important thing is however, that no matter how bad it seems there is often a solution and we urge everyone in trouble to get help as soon as possible.”

Debt charities such as Citizens Advice, CCCS and National Debt Line offer free debt solutions and will negotiate with credit card companies and banks on behalf of consumers. However, long waiting lists are a problem and many people are missing repayments, and incurring charges as they wait for debt counsellors to clear their backlog.

If you cannot wait, contact us for free advice on 0800 520 0923. Or visit our section on debt counseling.