Paraphrenitis Blog

Over the last twelve months there has been huge increases in the number of debt consolidation businesses now claiming to provide debt advice. Most businesses claiming to provide free debt advice do so on a non committal basis. However whether these organisations are providing good value with reference to their service and the information they provide?

Choosing honest and reliable debt advice will be time consuming. Regardless of the problems it is essential to shop around for this kind of service. Debtors should never simply go with the first debt adviser that they see.

The truth is most debtors fail to fully understand the different products regarding debt and financial packages generally. If clients had a proper understanding then they would not need the services of debt advisers.

Debt counselling businesses are overseen by the government to make sure they are accredited and properly respect customer non disclosure agreements. Regrettably it is very difficult to scrutinise or prove a given advisers motives when providing debt advice. In short how is it possible for a government regulator find out whether or not debt counselling was given with the best interests of the client at heart, or if, instead debt advice was swayed by the advisers bottom line?

The problem is that companies offering financial advice are really out to generate a profit. Income is made by passing debtors to alternative businesses or alternatively by charging arrangement fees from credit companies. It is therefore difficult to ascertain how efficiently such companies are really helping their customers. The main risk is that these debt counselling organisations could be tempted to make recommendations was driven by their own profits as opposed to offering the best solution to the customer.