Summary
If you are under pressure from creditors, you need to read this article. It outlines the three main debt advice services and describes the services they offer.

As Scotland’s recession develops, debt consultants are being bombarded by households desperately trying to organize their mortgage repayments, credit cards and loan repayments. There has been a 40 per cent increase in people in arrears on mortgages and secured loans say the Government, compared inquiries in 2008. The Consumer Credit Counselling Service, which additionally offers free debt advice, takes as many as 1,500 calls per day, while calls to the National Debtline are up 35 per cent. So, if you are burdened with debt problems which of these confidential services help you? 

 The Citizens Advice Bureau (CABs) , who are they?  They area a network of more than 3,200 bureaux around the Great Briton operated by volunteers. The mass of the offices have trained debt specialist.CAB (The Citizens Advice Bureau) One of the largest charity organisations in the United Kingdom manned to assist in dealing with most problems encountered in everyday life including debt consultation.

1. What do the CABs do?   To begin preceding there advisement, they need to appreciate your income and outgoings. So they will help you to build a list of creditors with income and expenditure.

Once this is finished, they will double check whether your profits can be expanded. For example, you may not claiming full benefits alternatively maybe you are using the wrong tax code. Then they will consider your family costs. They look at your household bills and finance repayments to see where you can save cash. They look at your family expenses and finance repayments to see where you can save cash. Then they will consider your family expenditure.

Your debts will be sorted into priority debts – that’s payments such as mortgage or rent, council tax and utilities – and your non priority ones, such as  Hire purchase, credit cards and unsecured loans

 You will then be guided through the process of setting up an Individual Voluntary Arrangement (IVA) with your creditors.

The adviser at the CAB will then help you to negotiate a repayment plan with your priority creditors – your mortgage lender or landlord, local authority and utility companies. The balance of your income after meeting your family’s other living expenses can be offered to non-priority creditors based proportionately on how much you owe to each of them..

During the negotiations with the unsecured lenders the CAB consultants ask for the charges to be suspended which is usually agreed to by the creditors due to precedent in court rulings. They can also be of assistance if your home is under threat of repossession and with any other court actions. 

 The bad point: more and more of us struggle with debts, their services are overloaded, so you may have to wait weeks, even months, for an appointment.

The good points: The CABs service is usually face-to-face, which means they can deal with the paperwork with you. They can then sit with you while you talk to your creditors. They may also help you deal with the Courts
 The Consumer Credit Counselling Service (CCCS) – The CCCS mainly operates via telephone and through there website although it is possible to visit one of their 10 regional offices by appointment

CCCS What do they do? The CCCS will draw up a budget with you to see how much money you really need to live on. Then the remaining money can be used to repay your priority creditors and then your non-priority debts. Most of the serious cases join the CCCs’s debt management programme. The CCCS will then negotiate repayments with the creditors and ask to freeze charges and interest.

Once in a debt management plan, you make one payment each month to the CCCS and they assign and dispense that money between your creditors thereby deducting the entire amount from your debt.

The good points: Debt management plans are easier to manage than continuing to repay several different creditors yourself. You can anonymously receive online counselling through a question-and-answer service.

The bad points: In order to enter a debt management plan, you will need enough spare income after essentials.
ND The National Debtline – The first and the original telephone-based debt advisory service.

What do the ND do? The ND send you a help pack containing forms and documentation including example preformatted letters to send to your creditors. They can also council you through your credit situation and offer information on what your creditors can do legally and suggest ways you can increase your income.
The good points: The service is quick and packed with constructive information offering assisted self-help.
The bad points: They will not speak to your creditors on your behalf. You are on your own.

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