You asked:

I borrowed money to try to catch up on bills and I’ve just ended up worse off. I’ve built up a few different debts and don’t know where to start. I keep seeing these adverts for debt solutions on social media saying they can clear 70% off my debt. I’m considering trying it but wondering if there’s a catch?” 

We answered:

You’re right to be cautious! The adverts and product promotions for debt solutions on social media and elsewhere online can sound really tempting – but they might not tell you the full story. Following inaccurate debt advice could make your situation worse rather than better, facing hidden costs and other unwanted consequences. Don’t forget that the right choice for each individual depends on lots of different factors – what worked for your friend, colleague or someone on the internet might not be suitable for you. We’ll take you through red flags to look out for, and how to get advice you know you can trust. 

If you’re facing debt, you’re not alone. Over the last 12 months, more than 2,000 Plymouth residents contacted Citizens Advice for free confidential and non-judgmental debt advice – and 4,500 were provided with support to help them manage high living costs.

Getting trustworthy, unbiased advice is essential as it will allow you understand all your choices, so you can make the right decision for you. We regularly speak to people who have been mis-sold a debt solution called an Individual Voluntary Arrangement (IVA) when other fee-free options like a Debt Relief Order (DRO) would have been more suitable – leaving them with unexpected fees of around £5,000 on average, and legally tied to an unaffordable five year repayment plan that can be tricky to renegotiate or add new priority debts to. It’s also important to understand all the ins and outs of any solution you’re considering – some debt solutions can affect your long-term credit score, while options like insolvency could place your employment at risk. 

Depending on your circumstances, the longer-term, more intensive debt solutions that you typically see advertised on social media can be powerful tools – however they’re not the only options out there and they’re not suitable for everyone. You may be able to resolve your debts through simpler, shorter-term methods like finding ways to reduce your payments, or using something called a Breathing Space to pause creditor action while you make a plan for your debts. That way you can save those more intensive solutions for if you really need them in the future. Here’s what to avoid if you’re searching for debt advice online: 

• Adverts or ‘finfluencers’ (financial influencers) trying to sell you just one debt solution – legitimate debt advice should let you know about all the options that might be available to you, so you can make an informed decision. 

• Individuals or companies charging you up-front fees for their ‘advice’ – you shouldn’t have to pay to get good quality debt advice. 

• No legal authorisation to give debt advice – before taking debt advice from an organisation or individual, check they are listed on the Financial Conduct Authority (FCA) register (remember that you won’t find your local council on the list, but can rely on them to give trustworthy advice). 

• Offering advice without doing a full exploration of your circumstances – there are lots of details to consider when deciding on the right course of action for you, including if you’re expecting a change of circumstances like retirement that will significantly alter your income. 

• Adverts that are tailored to you – for example “are you a single mum with debt?”. A bit like scams, these ads try to appeal to you on an emotional level so that you’ll act without checking all the facts first. 

• ‘Guaranteed’ solutions – be wary of ads making promises like a guaranteed amount of debt write off – before they know anything about your circumstances. 

• If it looks too good to be true, it probably is – claims like the one you mentioned are very appealing, but they often don’t mention fees and other implications like how your employment, credit score and more can be impacted. Always be wary of ads offering ‘guaranteed’ solutions – it’s not possible to say  

For more advice on this topic, call 0800 240 4420 from 9am – 8pm Monday to Friday, 9.30am – 1pm Saturday to speak to a trained debt adviser. Alternatively, you can complete a self-referral form to request a callback from our local debt team, who can offer face to face support. To find out about ways to boost your household income without borrowing, find the best contact option for you here.