There are probably very few adults in the UK with no debt at all. Fortunately, most adults can manage their debts capably even if they’d prefer to be without them.
Unfortunately, some adults struggle with their debts. They may learn to manage them with the help but only if they get the right help from the right people. With that in mind, here is a quick guide on how to ensure that you’re getting the right advice on how to manage your debts.
Make sure you’re clear on your situation
There are basically two ways you’ll get the wrong advice. One way is by listening to the wrong people. The other way is by giving the right people the wrong information so they end up giving you the wrong advice for your situation.
If you’re struggling with debt, then the thought of having to wade through your finances and paperwork and put them into order may be disheartening. It may even be frightening. It is, however, an essential starting point. It will therefore save everyone’s time if you take care of it before speaking to an advisor.
Educate yourself
Similarly, it will probably be useful for you to educate yourself on the basics of the various debt-management options available to you. You don’t necessarily need to understand the full details of them. An advisor will help you with this. Ideally, however, you should grasp the key differences between the various options.
Look for reputable sources of help
Instead of waiting for someone to offer you their help, proactively look for reputable sources. In the real world, free and reputable sources of advice (such as debt-management charities) are likely to be swamped by demand. This means that you may need a bit of luck to be taken on by them at all, let alone taken on quickly.
With that said, free help points may be able to point you towards a reputable source of paid help. It’s still recommended to double-check their suggestion(s) but that can still save you a lot of time.
If a paid source of debt-management advice does reach out to you directly, remember, they are not your only option. You’re under no obligation to sign up for their service even if they give you some help for free. Always do your research on them.
Be alert for aggressive-selling tactics
The key to aggressive selling is to put the target under pressure to sign up for something that it’s then difficult or even impossible for them to withdraw from. This can be through creating fear (e.g. of using your home) or by promising a quick-fix solution (e.g. the secret loophole hardly anybody knows about). If you spot anything like this, shut down the conversation and move on.
Make sure you know how to exit any agreement
The old advice about making sure you understand a contract before you sign it definitely holds true for contracts relating to debt management. You should be clear on exactly what you will need to pay and exactly what you will get in return. Above all, you should be clear on how to exit the contract. That way, if you discover you’ve made a mistake (or your circumstances change), you can cut loose from an agreement that doesn’t suit you.
Cross-check the advice you receive
Regardless of whether you get your debt-management advice from a free or a paid source, you should double-check it as much as you reasonably can. At a minimum, double-check anything significant before you make a final decision.
For example, if you’re paying for advice (or thinking of doing so), double-check the suggestions with free sources of advice such as online forums. This will often give you a range of feedback you can consider and incorporate into your decision-making.
