Be Careful Who You Trust
The Bankruptcy Advisory Service is an independent debt
advice service, and they say that unfortunately not everyone
who calls themselves such are what they claim to be. Many
companies who offer “free” debt consolidation advice, are
not who they really are, and are taking money from those who
can least afford it.
The problem is that many of these debt consolidation
companies are over the internet, and they push their clients
into debt consolidation options that they can ill afford,
and thus set them up for failure. The options that they are
given are inappropriate and end up costing them more money,
thus leading them into even more debt than they were before.
The organizations take advantage of those that are down on
their luck, and are “preying on people at their lowest”
according to the BAS. They get their information from the
Insolvency Register to see those that are paying off their
debts through an individual voluntary arrangement or IVA –
which is simply an alternative to bankruptcy.
They have many cases where these companies will target an
individual, tell them that there is a better way than IVA,
and then charge them three times the amount it costs to go
bankrupt. Or they call people to try and track down debtors
and then get them to sign with them to help them “manage
their debts.” Those people that get them to sign get extra
money for pulling more people in.
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