Debt advice that may leave you owing even more money

Be cautious of debt advice that may leave you owing even more money

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An increasing number of people are missing credit card repayments as finances are stretched by rising bills, according to lenders who have told the Bank of England that they expect the number of unpaid credit card debts to keep going up this autumn.

This could lead to more demand for advice on how to deal with debts, but there are some traps to avoid. Impartial advice is available free of charge from debt charities, and it is worth remembering that this option exists.

Social media and internet search pages are full of supposed quick-fix debt solutions, but they may come with upfront fees, unrealistic claims about writing off debt, and pressure to make a quick decision. These solutions may not be right for everyone.

To find help, it is suggested that you check whether a firm offering debt help is authorised by the regulator, the Financial Conduct Authority (FCA). You should cross-check the authorisation details they give with the FCA's register.

If you are unhappy with the service from an authorised firm, you can complain and, if you are still not happy, go to the independent Financial Ombudsman Service.

Alison Walters, director of consumer finance at the FCA, said that anyone struggling with debt deserves advice that puts their interests first. Free, impartial debt advice is available to everyone, and no one should be pressured or misled into paying for a debt solution that may not be right for them.

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