Trading Statement

Debt Free Direct Group PLC
03 May 2005



3 May 2005



                           DEBT FREE DIRECT GROUP PLC

                                 TRADING UPDATE



            DEBT FREE DIRECT PREDICTS CONTINUED GROWTH IN ITS MARKET





There has been much recent commentary on the consumer downturn, as portrayed by
the Financial Times on 28 April 2005 when it wrote 'Property gloom hits consumer
spending' and 'Higher interest rates have tipped some households into a debt
crisis'.



With house prices flat, or modestly falling, home owners have less capacity to
re-mortgage and release equity.  At the same time, lenders are tightening their
criteria, further reducing consumers' capacity to release house equity.



The result is that an increasing number of consumers are finding it impossible
to sustain the record levels of debt that they have built up over the last 5 -
10 years.  The signs of consumer debt fatigue are already showing.  Personal
insolvencies in the final quarter of 2004 were up by nearly 35 per cent on the
same period in the previous year, and in the first quarter of 2005 there has
been a 20 per cent rise in court orders against people failing to meet mortgage
payments.



Debt Free Direct is likely to benefit from this consumer downturn and predicts
continued growth in its market.



Trading update



Debt Free Direct's run-rate trends have continued to increase in the second half
of the financial year, as shown below:



                                Average monthly      Employee      Completed IVA
                                       turnover       numbers       monthly case
                                             £K   (period end)          run-rate

- 6 months to 31 October 2003               309            57                 72

- 6 months to 30 April 2004                 392            88                 95

- 6 months to 31 October 2004               515           117                110

- 6 months to 30 April 2005                 858           153                208



Turnover in the second half of the financial year grew by 119 per cent, compared
to the same period last year, which is consistent with a corresponding increase
of 119 per cent in the monthly IVA case run-rate.



The run-rate of completed IVA cases in the fourth quarter of our financial year
was in excess of 250 per month, ahead of market expectations.



We anticipate that the above will translate into profits in line with market
expectations for the financial year.



The preliminary results announcement will be made during the week commencing 27
June 2005.



Andrew Redmond, Chief Executive Officer, commented:



'The weakness of the housing market is having a significant impact on consumers'
ability to use equity to keep their finances afloat.



The IVA market grew by 41 per cent last year and continued double digit growth
is predicted.



We are delighted to have significantly grown our market share in this rapidly
expanding market.



Debt Free Direct have put in place the resources necessary to increasingly
promote its free advice services and continue to expand its capacity so that we
can further grow market share.'





Enquiries:



Debt Free Direct Group plc
Andrew Redmond, Chief Executive Officer            01257 240599
Paul Latham, Finance Director                      01257 240529

Teather & Greenwood                                020 7426 9000
Mark Dickenson
Jon Drage

Citigate Dewe Rogerson                             0207 638 9571
Michael Berkeley
Sarah Gestetner
Fiona Mulcahy





Note to Editors



Debt Free Direct helps individuals find the best solution to their debt
problems, based upon an analysis of their particular financial circumstances.
Financial information on an individual is process through a computer model (The
Best Advice Model) developed by Debt Free Direct in order to recommend a
solution suitable for that individual's particular financial circumstances.  The
solutions offered range from basis advice, such as simply destroying credit
cards and curbing unnecessary expenditure, to the following solutions:



•         consolidation loan
•         re-mortgage
•         informal arrangement
•         individual voluntary arrangement (IVA)
•         bankruptcy



Debt Free Direct is unique in the marketplace in that, unlike most of its
competitors who sell specific products, Debt Free Direct looks to provide the
best advice to the consumer and recommends them the most appropriate service.



Debt Free Direct is based in Chorley, Lancashire, and was admitted to AIM in
December 2002.


                      This information is provided by RNS
            The company news service from the London Stock Exchange