Overspent at Christmas? Debts getting you down? City of York Trading Standards urges those people who feel their credit has turned into crisis to seek free confidential specialist money or budgeting advice before the problem gets out of hand.
If you are missing repayments, worried about opening bills or you're paying off as much as you can but your debts are not decreasing, then you need help.
Why not take the "debt test"; at www.moneymadeclear.fsa.gov.uk devised by the Financial Services Authority, if you are worried about finances.
The world of debt management is rife with unscrupulous practitioners.
Bear in mind that choosing the wrong source of help could actually make your situation far worse.
The Office of Fair Trading (OFT) has recently warned 17 financial management businesses promoting Individual Voluntary Arrangements (IVAs) that it considers their adverts and websites potentially mislead consumers.
IVAs are increasingly being used by consumers in debt, but some of the claims made about IVAs were considered by the OFT to be in breach of its guidance for consumer credit licence holders engaged in the provision of debt management services.
Examples included falsely claiming that "up to 90 per cent off your debt may be written off" when the maximum would be in the region of 60 to 70 per cent and failing to state that set-up and administrative fees will be required and will be taken out of payments before the creditors receive any payment.
While the OFT has the power to refuse or revoke a consumer credit licence if it decides a trader engaged in debt counselling (or other credit activities) is not fit to hold a licence, it is far better to seek help from a local or national agency who can give free, accurate and impartial advice from the outset.
For details of such organisations who offer face-to- face money advice and national organisations who can help, phone Consumer Direct on 08454 04 05 06.
If necessary, your inquiry will be referred to staff at your local Trading Standards Service.
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