Debt consolidation reduces the number of creditors by merging all the debt into a single loan. This does allow a single monthly payment to be introduced but unless the interest rate can be reduced and the period of the loan lengthened there is little other benefit. Also there is always the temptation for the client to go and start borrowing and spending again as this is not controlled and this just results in an even worse debt exposure situation developing.
When clients decide to approach Administrators for assistance the Courts are approached for an Order to allow the administrator to take over the financial life of the client. It has been our experience that once under administration the client seems locked in to the administrator who may or may not be paying the creditors. It appears that few statements as to what the status of the matter is are issued regularly and which creditors are being paid what amount, when and what the balances are. We have come across cases where the clients have been under administration for many years and have never received any communication as to the status and balances of the debt.
It is recommended that clients take advice before going into administration. Should any client be unhappy with their administrator Killaghy Debt Counsellors would be happy to investigate and arrange for the termination of the Administration Order.
Address: 4 Ash Road Bryanston
Killaghy Business Solutions are Registered Debt Counsellors
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