Debt management programmes can appeal to people struggling with bills but some deals work out more expensive in the long run than the original debts because of higher interest or longer repayment periods.
(PRWEB) December 18, 2006
Debt advice organisation The Debt Counsellors has produced The Debt Management Report to improve public awareness of the potential pitfalls of debt management programmes.
With the total of personal debt in the UK now in excess of £1.28 trillion and increasing by £1 million every four minutes, many people are looking for ways to make their debts more manageable.
Against this background, debt management programmes, where a finance company takes control of someone's debts and deals with the various creditors in return for a set monthly fee, are becoming increasingly popular.
But The Debt Counsellors' Debt Management Report stresses that consumers should seek professional debt counselling before signing up to such an agreement because in many cases they have the potential to make a debt problem worse.
John Porter of The Debt Counsellors explains: "Debt management programmes can appeal to people struggling with bills but some deals work out more expensive in the long run than the original debts because of higher interest or longer repayment periods."
The Debt Management Report fully explains the dangers of debt management programmes and also gives details of the alternative solutions to serious debt problems.
Porter adds: "We strongly advise anyone considering a debt management programme to get professional debt help first. The Debt Counsellors give free, confidential advice on debt problems and can explain all the options available."
For more on debt management, visit http://www.debtcounsellors.co.uk