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Getting help · Lesson 9 of 10

Free Debt Help and How to Spot Debt-Relief Scams

Learn where to find free, honest debt advice, what a good adviser does, and the warning signs of debt-relief scams.

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THE WRITTEN LESSONFollow along at your pace

You do not have to sort out debt alone. In this lesson you see where to find free, honest help, what a good adviser does and the warning signs of debt-relief scams. This is general education, not financial or legal advice. Services and rules differ by country, so look for the ones where you live.

Free debt advice

Many countries have free, independent debt advice services, often run by charities or the government. They can look at your whole situation, talk to lenders and explain your options. A good one never charges you for a first meeting. If a service wants money before it has even listened, treat that as a warning.

A globe surrounded by small adviser figures, labeled Free, independent advice. Three ticked lines read Look at your whole situation, Talk to lenders and Explain your options. A price tag shows $0 beside the words First meeting: free, with a green check.(opens the full-size picture)
Free advice can look at your whole situation, and the first meeting costs nothing.

What a good adviser does

A good adviser spends time on your budget before suggesting anything. They do not promise to fix everything, and they explain the costs in writing. To get the most from a meeting, bring your statements, a list of what you owe, and your income and essential costs. The debt list you made earlier in this course is a good start.

An adviser and a seated person look at a notebook headed Budget. A red crossed card says Promises to fix everything, a good adviser never does. A green check reads Costs explained in writing. A bottom row says Bring: Statements, Debt list, Income and costs.(opens the full-size picture)
Bring your papers. A good adviser starts with your budget, not with promises.

Four warning signs

Be careful with any company that does one of these. It asks for fees before it settles any of your debts. It guarantees to clear all your debts. It tells you to stop talking to your lenders. Or it claims to offer a special government programme you have never heard of. Any one of these is a red flag.

Four red warning cards, each with a triangle sign: Fees up front, before any debt is settled; Guaranteed results, promises to clear it all; Stop talking to your lenders; and A government programme. A chip below reads Any one of these is a red flag.(opens the full-size picture)
Any one of these four is a red flag.

Free first, paid never in advance

A company that asks for fees before it has settled any debt, or that guarantees results, is worth walking away from. Free advice services exist so you never need to pay just to get help.

The risk of debt settlement

Some companies offer to settle your debts for less than you owe. They often tell you to stop paying while they save up. Meanwhile, late fees and interest keep growing, your credit score can drop, and lenders can still chase you or take you to court.

A red STOP PAYING stamp above a jar of coins labeled They save up. Coin stacks grow taller from Month 1 to Month 4 under the words Late fees and interest keep growing. A credit score dial points to Low, with the words Credit score drops, plus a law book and court letter. Chips say Lenders can still chase you, or take you to court.(opens the full-size picture)
Stopping payments lets fees and interest keep growing.

Check before you sign

Before you sign anything, search the company’s name with the word complaint or review, and check that it is licensed or registered where you live. Get every fee in writing. If it sounds too good to be true, it probably is.

Three cards: a magnifying glass over a search box that reads name plus complaint, Search the name and complaint; a shield with a check, Check it's licensed where you live; and a document marked FEES, Every fee in writing. A chip says Too good to be true? It probably is.(opens the full-size picture)
Three checks before you sign: search, licence, fees in writing.

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Read the full lesson script

Welcome back. You don't have to sort out debt alone. In this lesson, you'll see where to find free, honest help, what a good adviser does, and the warning signs of debt-relief scams.

Many countries have free, independent debt advice services, often run by charities or the government. They can look at your whole situation, talk to lenders, and explain your options. A good one never charges you for a first meeting.

A good adviser spends time on your budget before suggesting anything. They don't promise to fix everything, and they explain the costs in writing. Bring your statements, a list of what you owe, and your income and essential costs.

Be careful with any company that does one of these. Asks for fees before it settles any of your debts. Guarantees to clear all your debts. Tells you to stop talking to your lenders. Or claims to offer a special government programme you've never heard of.

Some companies offer to settle your debts for less than you owe. They often tell you to stop paying while they save up. Meanwhile, late fees and interest keep growing, your credit score can drop, and lenders can still chase you or take you to court.

Before you sign anything, search the company's name with the word complaint or review, and check that it's licensed or registered where you live. Get every fee in writing. If it sounds too good to be true, it probably is.

So remember: free, independent debt advice exists in many countries, and a good adviser looks at your whole budget first. Watch for upfront fees, guarantees, and being told to stop talking to your lenders. And check any company before you sign. Before the next lesson, find the free debt advice service in your country, and save its details. Next, you'll make a plan to stay out of debt.