Debt management programmes can seem attractive because the amount being paid monthly might be less than the cost of servicing all the individual debts. But in some cases, the term of the agreement is longer so the debtor ends up paying out more.
(PRWEB) June 18, 2006
Debt help experts The Debt Counsellors have released The Debt Management Report to raise awareness of debt management and draw attention to the potential dangers of debt management programmes.
The total of personal debt in the UK is in excess of £1.1 trillion and thought to be increasing at a rate of around £1 million every four minutes.
Because of this, debt management programmes, whereby a company takes control of someone's debt and deals with the various creditors in return for a set monthly fee, are increasing in availability and popularity.
However, as The Debt Management Report points out, extreme caution should be employed before signing up to such an agreement because too frequently they serve only to make the debt problems worse.
John Porter of The Debt Counsellors explains: "Debt management programmes can seem attractive because the amount being paid monthly might be less than the cost of servicing all the individual debts. But in some cases, the term of the agreement is longer so the debtor ends up paying out more."
The Debt Management Report highlights this issue and explains the other pitfalls associated with debt management programmes, as well as giving details on the alternative solutions to serious debt.
Porter adds: "People should think very carefully before opting for debt management because often there are much more viable alternatives available to them. The Debt Counsellors, therefore, advise anyone considering a debt management programme to read The Debt Management Report first, and then seek professional debt counselling for more information."
The Debt Management Report can be viewed at http://www.debtcounsellors.co.uk/reports/debt-management-report.html
For further debt advice and information on debt management, visit http://www.debtcounsellors.co.uk
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