According to a recent study, a great many indebted Brits are falling prey to low brow debt management firms, with many reporting that their financial situation has actually deteriorated, as a result of using their services and/or cohering to their recommendations.

Some consumer groups have suggested that certain individuals would be better off orchestrating their own debt management routine, rather than employing the services of a professional organisation. It would appear that a handful of unscrupulous “debt specialist” firms have given the industry a bad name at the risk of destroying consumer confidence.

Consumer groups have advised individuals seeking debt help to try and use a little common sense, in order to avoid being misled. As an example, it is reported that certain lenders are offering high interest unsecured loan plans to indebted consumers, and are making the prospect attractive by stretching the repayments over longer terms.

In this type of situation, it is important for consumers to actively research the market, in order to establish if the proposal does represent good value for money. In almost 90% of cases, if the applicant is a homeowner the fact that they have bad credit is less likely to be a detriment, and they will still be able to qualify for a good rate by choosing a home loan. Unsecured loans on the other hand, are rarely a viable debt consolidation prospect.

Indebted consumers should also remember that impartial debt advice is readily available from a number of specialist agencies…for free. However, in spite of the bad press there are still some excellent professional debt companies out there, who can genuinely offer a viable solution. It would be wise to research any prospective company before committing to a proposal; a quick search online will usually answer any doubts that you may have.