There is a place for free and fee debt management

STAR LETTER

As a fee-charging debt management company we try to present a balanced view of the debt solutions industry.

So it was pleasing to see David Mond’s letter last week (Mortgage Strategy Letters October 18, 2010) in response to yet another disparaging article from our charitable free to use counterparts in the debt industry.

Isn’t it time the charitable debt advice sector stopped throwing rocks at the fee-charging sector and held a sensible discussion about the real issues, such as claims management companies masquerading as debt management companies?

The fact is Middle England is quietly suffering during this recession and, like it or not, most professionals prefer to use other professionals when they need help.
So can we just agree that there will always be a place for ethical, properly regulated fee-charging debt management companies, just as there will always be a need for the free charitable sector.

One is not automatically bad, just as the other is not automatically good, as many satisfied clients will testify.

After all, is it more ethical for a mortgage broker to charge a fee for getting a client into more debt, rather than a debt management adviser charging a fee to get a client out of debt?

Michael Nicholls
Debt advice specialist
Focus Debt Management