Debt management firms forced to change

A huge number of borrowers in the UK find it hard to repay their personal debts, which has brought about the emergence of debt management companies.

Even though borrowers struggling to manage their loan repayments can get free debt advice from organizations such as the Citizen’s Advice Bureau, many people choose to pay a company to manage their debts.

The Office of Fair Trading (OFT) has recently analyzed the activities of a great number of these debt management companies and has revealed unacceptable flaws in the practices of many firms.

Worryingly, some borrowers, who have resorted to the help of debt management firms, have actually aggravated their financial situation and were forced to pay exorbitant fees.

As a result of the investigation, 129 firms have been told they will lose their consumer credit licence if they fail to improve the way they do their business within the three-month period.
 


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The cultural transformations that have made people accept life in debt have had a direct impact on the approach youngsters take to money matters, which could lead to negative consequences in the long run as many of the next generation would resort to IVAs to cope with serious financial issues.

When we put efforts into our work and get paid for this, we get an amazing feeling of satisfaction. Our hard hard work seems to have been remunerated financially. We go shopping and buy the items we need and the items we simply want.