It’s our firm belief that debt consolidation providers are generally not your friends. In fact, ASIC has recently put them in the spotlight.
We do recommend them in certain circumstances. It’s a remember, however, that they work as a for-profit enterprise.
Whilst you might not pay them upfront, there are charges and fees applicable to their services. Effectively, you’ll pay via the debt consolidation loan they provide for you.
Going debt free
If you’re needing some support, then we recommend counseling as the best possible first step in the journey. Getting rid of all your debts is quite literally liberating.
These companies are generally opportunity-driven. They make their money from targeting struggling Australians, and charge them high fees which are quite excessive. Our recommended service is quite reasonable, and one of the few exceptions in the Australian marketplace.
We’re really advocates of the debt-free lifestyle. This community we’ve created has inspired thousands of people around the country, and in fact, we’re now getting a lot of interest from overseas.
Being targeted: Seek independent advice
If you think you’re being targeted by a vulture in the debt consolidation industry, then it’s wise to seek independent advice. Our most recommended government website is the Consumer Action page which is full of excellent content. This is a great organization.
It’s also wise to no longer engage with such companies, unless you feel they’ll genuinely will help you through the tough times ahead. You, the individual, still has all the power.
Roles of debt consolidation companies
Australia has a range of firms that provide such services. They help consumers suffering from financial hardship.
Debt management firms do the following:
- Negotiate with creditors so you don’t have to
- Help you develop and manage your weekly budget
- Advise and organize formal debt repayment agreements
- Clean up, fix or repair default listings (Not reliable)
Often you’ll find these guys use high pressure selling techniques. Why? Commissions. They’re pretty high. But not all companies are like this, and our recommended service is quite legitimate and upfront.
Closing thoughts
Not all debt consolidation companies are vultures. There are some that have been in trouble with ASIC previously. Go with a reputable company who has been operating for years.
Despite all the challenges you might be facing, it’s wise to remember that you still have some form of control. Debt collection is a serious thing, and a debt consolidation loan can help you in some circumstances.
If you’re ready to have a chat to us, then we also provide a FREE 10 minute friendly phone call. We’re totally open and helpful, and are very much community-driven for all Australians.
