Professional debt solutions: better than going it alone?

6 May 2009

Once you`ve decided it`s time to sort your debts out, the question is: how? Is it better to ask for professional help or to go it alone?

First of all, there`s no universal `right` answer - if there was, everyone would do it that way. There are benefits and drawbacks to either approach.

Here`s a quick look at a few of the benefits which each approach may offer...

Advantages of professional debt solutions

• Debt professionals (should) have the experience and knowledge you need. The ins and outs of dealing with financial problems may be new to you, but they won`t be new to a company / organisation that`s spent years helping people with their debts. Many people think this is well worth any cost involved - especially if they can help you avoid fines, reduce the interest you`re paying, etc.
• Different debt solutions have been specifically designed to help people with different kinds of debt problems. Whatever actions you need to take will have to be carefully calculated if they`re going to sort out your debt problems as quickly as possible - without committing you to something you can`t afford.
• Debt professionals may know some of your lenders quite well. They may have worked with them in the past to help other borrowers sort out their problems. In other words, they might know what sort of compromises the lender is likely to consider - and the lenders may already trust them to come up with a solution that`ll work for everyone involved.

Advantages of the `going it alone` approach

• You won`t have to pay anyone for their services. Many debt professionals will charge for the time and effort they put into helping you.
• There won`t be anyone else involved - just you and your creditors (and perhaps, if things have progressed that far, the courts). So you might prefer this approach if:
  • you don`t think anyone else will understand your finances as well as you do, or
  • you don`t think they`ll treat your case with the care and attention it deserves, or
  • you`re not convinced you`ll get an experienced professional dealing with your debts.
• You won`t be committed to anything. Some debt solutions can require commitment, but if you`re `playing it by ear` you`ll be free to change your mind (although your lenders may require you to commit yourself to a repayment plan, of course).

Which is right for me?

There`s no way of knowing ahead of time. Of course, you can always talk to a company / organisation that offers professional debt solutions and find out exactly what it is they can offer - if you don`t like the sound of it, you don`t have to go ahead with it.

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