Ray Watson, OFT Director for Consumer Credit, said: "We expect any advice given to debtors to be in their best interests."

He warned the mailshots contained misleading advice that could force people into greater debt.

For anyone with debt problems, there are several ways to avoid getting into more difficulty. Legitimate debt management firms can offer help that you can trust and you can get free advice from Citizens Advice or National Debtline.

You could ease your money worries by switching loans or credit cards to cheaper rates to cut the monthly financial burden. Or you could take out a consolidation loan to round up a range of monthly payments into one that is easier to remember.

If you are in serious difficulties, you could consider an IVA (individual voluntary arrangement), where you agree an affordable schedule of payment with your creditors. They will often accept less than they are owed to help people repay what they can.

Normally an IVA lasts for five years and people can keep their homes. But with bankruptcy - as suggested in the rogue mailings - all your assets, including your home, have to be sold to repay debts and this can mean financial disaster.

Source:
http://www.mirror.co.uk/news/money/mirrormoney/2008/06/26/mirror-finance-beware-of-dodgy-advice-89520-20621360/