How To Choose A Debt Advisory Services
Debt management plans are a good option if your financial problems are temporary and the situation is likely to improve in the near future
. If you are seeking help from a Debt Advisory Firm, There are several factors to consider when choosing a debt advisory service including:How quickly can you repay the debt?: Many plans may only make minimal contributions in the region of 1 a month which may seem an attractive option. But this could equate to a lifetime of debt so you should always try and repay the maximum per creditor contribution that you can afford - the higher this is, the quicker you will be debt free.
How much are you charged?: Most companies typically charge around 15% of your repayments. There can also be administration costs to pay which could swallow your first month's repayment. Fees should only be set up once the debt management plan has been agreed - you should never pay 'up front' for advice.
What do you get for your money?: Find out exactly what you are getting for the fee - will the company administer payments for you? Will you have a dedicated account manager who is on hand if you have any queries? Can you refer any issues with your creditors to this account manager? Will you be assisted throughout the term of your plan?
Is the company regulated?: Does the debt management company conform to the guidelines of the OFT? If you have concerns, check out the companies and websites on the OFT consumer credit register.
The Gazelle team has wide ranging banking experience that has lived and breathed debt in both the corporate and leverage finance markets covering all aspects from raising new debt and refinancing to restructuring debt facilities. Their approach results in effective, bespoke solutions allowing our clients to focus on their core business. Their debt advisory business offers independent, impartial advice, focused on debt related situations and solutions including:
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Raising new debt
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Amendment of existing debt facilities
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Acquisitions and disposals
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Mergers and demergers
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Refinancing
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Restructuring
by: Jim Strange