Government Credit Counseling

Instead of private credit counseling firms, what about counseling by a government agency at no cost to overburdened consumers? In the United Kingdom, the Department of Trade and Industry (DTI) has just completed a pilot test of a national money advice telephone helpline. The minister of DTI, the credit industry, and other government agencies provided an initial £2 million. The service started in March of this year. "The advice given will continue to be on a self-help basis with callers receiving advice and support via the phone on how to negotiate with creditors and deal with court proceedings themselves." The center also sends callers a free package of material to assist them in the management of their debt. Since phone calls are coming in at all hours of the day, the managers are considering extending their hours. Plans are underway to open a similar office in Scotland the second half of the year.