When in financial troubles, debt management advice is needed to guide and assist the consumer in this rough patch. However, there are times where the source of the debt management advice is not credible and can actually cause the situation to worsen. A consumer needs to be sure of the advice they are given as bad debt management advice can cause more harm than good.
There are many sources of debt management advice out there and many methods that are being touted as the best way to get rid of debt. However some of this advice can actually do more harm than good and escalate a minor debt problem to a big one. The following pieces of debt management advice should never be implemented:
There is no quick fix for debt, and any advice that promises to do so should not be followed. The fact is that debts have to be paid, and they will be paid. It is just up to consumer to find the most reasonable means of debt management available.
No debt management advice will ever ask a consumer to cash in policies or retirement funds, as this goes against the principles of debt management. The very point of debt management advice is to help a consumer secure their future and retain their assets, and this includes policies and retirement funds.
Debt management is not free, legally there are fees attached and most debt counsellors offer debt management advice at a fee in order to make a living. Therefore anyone who offers this service for free should not be approached as they are more than likely operating under fraudulent intentions.
Bad debt management advice includes encouraging consumers to skip payment, defer payment or taking more credit to pay current debts. These are not sound debt management plans and will only make the problem worse.
Always speak to someone with experience in debt management when seeking advice, and know that you are within your rights to request that they furnish proof of their accreditation. If you encounter bad debt management advice, report it to the NCR or credit ombudsman and they will investigate the matter.