When Free Really is the Best Option

19 May 2012

No one likes paying for things unnecessarily, especially when it comes to a service that is available elsewhere for free.

If faced with two cash machines on the same street how many people would use the one which charges, or given the option of filling up their tyres for free or paying for the air - how many would choose the latter? I would guess at very few.

At a time when customer service is absolutely paramount, many of us may assume that a paid for service would be of a superior standard, possibly offering some added extras - or even a 'quick-fix' - that a free service couldn't.

Sadly, when it comes to commercial debt management this certainly isn't the case. Everyone will have seen the friendly, glossy adverts offering "a much-needed lifeline" which will "turn the lives around of those struggling with debts".

Many commercial agencies appear to promise the Earth to potentially vulnerable customers - some have even claimed to be able to write off debts completely - but some of these firms are actually making the lives of their clients much worse.

A recent BBC investigation revealed that some companies delay handing over their clients' repayments to creditors in order to negotiate a lower settlement. This tactic leaves families already laden with large debts much more vulnerable, without them even being aware of the risks - should the company fail and if a client's funds are still in its account there's a strong likelihood their money will be lost and their debts barely reduced.

I'm pleased that following this investigation the Office of Fair Trading has promised to continue its crackdown on the industry to help protect the thousands of people already finding it difficult to cope with their debts.

Money worries can often leave people feeling helpless, isolated and trapped with no where to turn for help. It can feel like such a lonely place and problems can quickly spiral out of control if not managed correctly. It is no wonder that people in this situation are so easily convinced that commercial firms are their only way out - but this is certainly not the case.

Debt management is currently an unregulated market so I would urge anyone considering using a private service to always seek free, impartial and independent advice from the Community Legal Advice service or Citizens Advice - especially before agreeing to pay a fee.  

Any Northumberland resident concerned about debt or financial matters can access free face-to-face support from the Citizens Advice drop-in service at Morpeth's Tower Buildings, for opening times or alternatively for free telephone advice contact the Northumberland advice line on 0844 4111 309 or contact the Community Legal Advice on 0845 345 4345.