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In The Spotlight
- Family debt advice business scoops Franchisee of the Year award
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- One advisor, two debt management referrals and over £600 commission
- Former mortgage packager tells of transition to award winning debt advisor
- EuroDebt and mortgageforce partnership goes from strength to strength
Debt charities turning away crisis-hit consumers
Monday 8th February 2010A new report from the National Audit Office has indicated that some debt advice charities are struggling to cope with consumer demand for help.
The National Audit Office Report has suggested that at least two debt agencies are refusing to take on new clients, whilst others have waiting lists of up to 6 weeks for a face to face appointment.
This presents a major issue for consumers struggling with their finances, according to debt solution provider EuroDebt.
Kevin Still, director at EuroDebt, said: “The charity sector does an excellent job in supporting individuals facing financial difficulties, but the reality is that there just isn’t the resource for them to help everyone. Often the individual and families who most urgently need help are those with the higher levels of debt. So the longer they have to wait for help, the greater the problem gets.”
Mr Still continued: “The other issue that is highlighted by the findings of the NAO report is that the model used by the charities is well proven to have less acceptance from creditors. The voluntary organisations focus on a self-help approach to debt management. These keep the onus with the individual on managing the relationships with their creditors and, unfortunately, this often means that they are less successful in getting interest frozen on outstanding debts or stopping debt recovery activity.”
Mr Still stated that his company firmly believe that there is a place for both types of debt advice organisation, adding that it is not uncommon for EuroDebt to refer people with very low disposable income to their local CAB.
He added: “The primary goal of EuroDebt is to act fast to help consumers take a responsible position with their creditors, especially where they have multiple credit cards and loans. We do this by notifying the unsecured lenders that the individual has entered a Debt Management Plan.”
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