Watch out for phoney advice

If you're already facing a raft of calls and letters chasing for outstanding debts, you can't be blamed for looking for an easy way to get out of the problem. And the recent surge in Claims Management Companies, offering ways to wipe out your debt might sound appealing. But the simple warning is if it looks too good to be true - it probably is!

"... rather than solve your problems they could actually make them worse ..."

Now, The Credit Services Association (CSA), the main trade body for debt collectors, is trying to tackle the many websites that are guilty of "encouraging" people to evade debts, provide "breeding grounds for misinformation". In particular, the CSA warns about online forums set up by Claims Management Companies that "celebrate 'victories' against creditors, set up tallies of how much has been refunded in bank charges [and] provide standard template letters".

These claims are often unfounded and just designed to entice the vulnerable into signing up to their services. But rather than solve your problems they could actually make them worse - because while you don't settle your debts, interest and charges will continue to accumulate and your credit file will look worse.