Citizens Advice Bureau

I recently tripped on a pavement because of loose paving and broke my leg. I've seen adverts for legal help - 'No win, no fee' and was wondering if I should use one of these companies to seek compensation. Surely the worst that could happen is that I don't win?

You are right to be cautious. These 'no win, no fee' schemes are called conditional fee agreements. The claims management company usually passes your details to a personal injury solicitor in your area. The solicitor will then invite you to a free initial interview where your case and costs can be discussed. Most of these schemes insist that their solicitors use 'after the event insurance' provided by a particular insurance company.

This insurance is intended to pay for the other side's costs if you lose and, depending on the agreement, the solicitor's expenses, medical reports and any barrister's fees. If you win the case, you will have to pay the solicitor's fee and the insurance premium out of the damages you are awarded.

One of the problems with these schemes is the agreement may only come into force if the case actually goes to court. If it doesn't, you have to pay all your solicitor's fees. Even if the case does go to court and even if you win, you may be left with nothing after all the fees (work done by the solicitor), insurance premium and disbursements (legal expenses such as court fees) have been deducted.

If you lose, although you won't have to pay your own solicitor, you may find yourself having to pay the other side's costs.

In the vast majority of cases seen by Citizens Advice Bureaux, claimants are recovering little more than a few hundred pounds and in some cases even end up owing money to the claims management company after winning their claims.

If you are considering entering into a conditional fee agreement you can instruct a specialist personal injury solicitor without going through a claims management company. Even so, you must be clear what the terms of the agreement will entail and you should consult an experienced adviser, for example at a Citizens Advice Bureau.

If you do still wish to go ahead, read the agreement very carefully before signing it.

I work at a local sixth form college and want to give our students some tips to help them think about their spending and avoid getting into debt. Can the CAB help?

You've come to the right place! Last year Citizens Advice Bureaux helped with over 670,000 consumer credit debt problems, including problems with loans, overdrafts, credit cards and store cards, we know that there is a very fine line between handling credit commitments comfortably and slipping into debt.

Here are some key questions that your students can ask themselves before taking on more credit this year.

1. Can you pay by cash? With the current low return on savings, you will pay less using your own money because you earn less interest on your savings than you pay for credit.
2. If you haven't got the cash, can you really afford to borrow?
3. How long will it take to pay off a credit card, a store card or a loan?
4. How much interest will you end up paying? What is the APR (annual percentage rate)?
5. How much will it cost each month? Can you really afford the repayments, especially if other costs, like your rent, go up?
6. Have you compared credit card and loan options to work out the best deal for you before deciding to 'buy now, pay later'?
7. Before you use an authorised overdraft facility, have you checked the conditions and penalties? How quickly can you repay the money you will owe the bank?
8. What will happen to your credit commitments if you suddenly have less money coming in or have to spend out more each month?
9. Are you confident you're not over-committing yourself, and you can keep your credit under control to avoid it turning into debt?

The Citizens Advice service is the UK's largest free money-advice service. For advice and information, visit www.adviceguide.org.uk or contact your local CAB.

The Citizens Advice Bureau offers an independent, impartial, confidential and free service. Its volunteers receive comprehensive training and support.

Wavertree Citizens Advice is looking for people who can commit 2 days a week to help deliver its service.

If you are interested in becoming an Advisor, IT Supporter or a Campaigner then please contact:
Heather or Jane , Wavertree C.A.B., 242 Picton Road
Liverpool L15 4LP 0151-522 1404
Email: www.wavcab@hotmail.com