PayPlan has launched a new online resource to help people get a tighter grip on their finances.
The free debt managing service said over 5,000 people had used it within the first two weeks of launch.
Diagnose Your Debt is a calculator that allows individuals to assess how they are managing their money by asking a series of ‘yes’ and ‘no’ questions about their spending and lifestyle habits.
Rachel Duffey, CEO of PayPlan, said its research found that 91% of people were stressed about their finances and developed Diagnose Your Debt to warn them about the early signs of debt.
“Being able to recognise issues...

Arrow Global Group Plc has agreed terms for the acquisition of InVesting B.V.
The purchaser and debt manager is paying around £78.5m for the consumer debt purchaser and collections provider which has operations in the Netherlands and Belgium.
Tom Drury, Chief Executive Officer at Arrow Global, said the acquisition remained consistent with the...

The Debt Managers Standards Association (DEMSA) said its annual conference will focus on better engagement by the debt advice sector with consumers, creditors, service providers and...

Diary of aDebt Advisor

Diary of a Debt AdvisorAfter years in the debt management industry I thought it was finally time to lift the lid on some of the most interesting cases of my career. Every week I will reveal an exclusive insight into the people behind the debts and how I managed to help them...Read more

In ProfileWith...

In Profile With...DMT talks to a wide range of individuals and companies within the industry about different ways to help consumers to decrease their debt...Read more

Hi I am currently with First Step Finance but had a call from Gregson and Brooke saying that First Step is under threat of closure. I have only been with them a few months. Should I be changing company and also should I change to Gregson and Brooke? I have considered them in the past but found no one had heard of them and so didn't trust them. I used to be with a debt management company called debtfixers who were quite good but I wanted to get out of debt faster, but to be on the safe side should I change back to them instead? There is not an awful lot we can afford at the moment and by the looks of it money will soon be getting tighter with my partner's job losing contracts. We also have 3 kids to care for and another on the way. I would appreciate any advice you could give me. Thank you.

First Step Finance does have a Minded To Revoke (MTR) notice on its Consumer Credit Licence (610509), but this has been open since December 2010. This doesn’t mean that the business is being shutdown, but it does mean that you should be cautious. They are listed as a member of the Debt Resolution Forum (DRF). In the first instance I would suggest that you contact First Step Finance to put your mind at rest and to determine whether they have had any success in dealing with your creditors through their ‘debt resolution’ business model. Debt Management Today did cover their response to this matter in March 2011:

Unlike a traditional Debt Management Company, who have to provide an estimate of the duration of your Debt Management Plan (DMP) under the OFT Debt Management Guidance, First Step Finance need to provide you with a clear outline of how you will become debt free. This is not readily apparent, as they are using a variety of techniques to negotiate with your creditors. If you have been with them several months then you should be receiving monthly statements and progress reports. The same points will apply to Gregson and Brooke, who operate a similar model to First Step Finance. My initial impression is that you received an unsolicited call from a competitor where the sales agent has acted unprofessionally. This is not the first contact you have had with them and are understandably cautious.

My feeling is that you need to work with First Step Finance, as switching providers can break the continuity of your debt solution and creditors can change their mind with regard to accepting proposals, including freezing of interest & charges. You should be contributing based upon what you can afford and your creditors need to be made aware of your current circumstances, especially if you are suffering increased financial hardship.

Should you remain dissatisfied then you should look at either using a free-to-consumer provider that is able to offer you an early appointment or a commercial debt solution provider that operates a recognised code of conduct and is a member of one of the primary trade associations. These are:

If you elect to switch provider then you should look for a provider that does not charge you a new set-up when switching from another debt solution provider.

I have a pension of £16k that I no longer pay into from an old company and would like to release 50%...

“Pension release is a specialist area of financial advice and will depend on your age, as the products are primarily designed for those over 55 years of age. If you are using the funds for debt consolidation purposes then you will need to find a financial adviser that is both authorised by the Financial Services Authority in the provision of advice on pension release and licensed by the Office of Fair Trading for debt counselling. The risks of drawing down your pension early need to be fully explained.”