Private Debt Counselling - WHY???

andy777_2

Hi,

I am always amazed that people use private debt counselling firms, especially when one hears the horrific charges so many of them levy on people already in financial distress! Why don't people just visit the CAB or other government initiatives in this area that are free of charge???

**purpleprincess**

I think because they are not advertised like the ones that charge!!!

**purpleprincess**

Welcome to MSE by the way!!

andy777_2

Thanks Purpleprincess!

Good point about the advertising! At least a forum like this points more and more people in the right direction!

**purpleprincess**

No probs, hope you find it as helpful as I have!!

Exactly, this website is a godsend!

kathfisch

Unfortunately I think it could be a lack of knowledge about these charities/groups. I certainly never knew who they were and what they could do before I joined this site, except for having a vague idea that cab could probably help with most stuff!

Trouble is the fee charging companies thereby have the money to spend on advertising and the charities couldn't compete. They are run off their feet as it is, from what I hear!

Sites like this certainly help though, so many newbies post with "help, which consolidation loan should I choose" or "there's this company.... and for only a small fee...." etc etc. We very quickly tell them about all the other options!

The more people Martin can encourage to visit this site the better in my opinion!

keith_lard

**purpleprincess** wrote:

this website is a godsend!

HERE, HERE! :beer: :beer: :beer: :beer:


I went with Chiltern Debt Managment, 16% of what I paid back they took from me Adding time to my plan, I read about CCCS in a paper and have never looked back! :T :T :T


Spreading the word about this site to my friends has helped all of them!

It really has.


K. :A

fizzel81

we went with b&e as it was one we had heard off, unfortunatly you dont hear of those such as payplan or cccs unless you have found this site or no anyone who has gone/currantly going through debt management, i would never have heard of either of the above(we are currantly trying to change to payplan) if it had not been for some wonderfull peeps on here, i can honestly say i had no idea cab delt with things such as debt, only today a friend of mine(it is amazing as i read on a thread this week how people will own up when they know you are going through it) was talking about going to a well known fee chargeing company to see what they could do for her again like me she had no idea there were at least 2 charity debt managment companys.
please dont judge or think we are mad for going with a fee chargeing company in many cases it is simply not knowing paypaln/cccs exsists

andy777_2

Sorry Fizzel81, I didn't mean to sound judgemental about people using private sector "counsellors". In response to my question I was expecting to hear that the private firms - incentivised by potential profit - offer a quicker or more effective service, rather than the sad fact that the free services are simply relatively poorly publicised.

Given the boom in consumer credit, perhaps the government should be gearing up the CAB etc to accommodate more demand, and also spend some more money advertising their free, worthy services that can help without further burdening people who are struggling.

Tr@cker

Being of a suspicious nature i was just wondering if insolvency practitioners had some sort of deal with creditors (?) My impression is that they (the creditors) take more notice of IP firms.

andy777_2

Interesting idea Tr@cker....

I guess that the creditors would be more receptive to organisations that have less sympathy for debtors than the likes of the CAB who are there to help and not to profit?