Trading Update

Debt Free Direct Group PLC
03 May 2007


3 May 2007

                           DEBT FREE DIRECT GROUP PLC

                                 TRADING UPDATE

Debt Free Direct Group (DFD), a leading debt advice and solutions company, today
releases a trading update ahead of its preliminary results announcement, which
will be made during the week commencing 25 June 2007.

In overview

Anticipated results for the financial year ended 30 April 2007 will be in line
with market consensus of £8.5 million adjusted PBT.

IVA business

As previously stated in our trading updates of 26 January and 6 March, the last
6 months have seen a very challenging trading period in the IVA market. The
difficulties we have faced have been well documented and most notably include:

   - increased competitor advertising, with a consequent deterioration in our
     advertising performance

   - creditor pressures, which have resulted in an increased incidence of case
     rejection and case adjournments, with a consequent slow down in the growth 
     in run-rate of new IVAs.

However, there are many reasons to be encouraged with regard to our position in
the IVA market as we enter a new financial year.

   - We believe that peaceful and sustainable working relationships with 
     creditors will develop over the coming months. The difference between the
     genuine debt advisors and the less ethical sales orientated companies is 
     already becoming increasingly apparent to creditors and we remain confident
     that the ethical advisors will prosper.

   - We are encouraged by the Advertising Standards Authority response to the
     highlighting of misleading and untruthful IVA adverts. As a consequence,  
     now that the more outrageous and untruthful claims of other advertisers 
     have been banned, we anticipate that the IVA advertising market will not 
     remain as competitive as it has been in recent months.

   - As the largest and longest established IVA provider in the market (we have
     almost 10,000 live cases), we believe that we are the most able to  
     withstand any future industry changes, particularly with regard to fee 
     structures. Our bank of existing supervisory cases (which will not be 
     impacted by any such changes) will provide a cushion, both in terms of cash
     generation and highly visible future income and profits.

   - In overview, we are very confident that we are in a very strong position,  
     and will certainly be less impacted by the changing face of the industry  
     than some of our weaker competition.

DFD Australia

Progress in Australia continues to meet and in places exceed our expectations.
We are very happy with our ability to generate and convert leads. We continue to
work hard on building creditor acceptance, particularly as the Australian
regulatory landscape will be changing over the coming months. We anticipate, in
line with previous updates, that the business will become profitable in FY09.

DFD Mortgages

Our organically developed mortgage and loan business continues to make
encouraging progress and case conversions achieved are better than those
achieved from the previous referral based model.

We anticipate that revenue from DFD Mortgages will grow to in excess of £4.5
million in FY08 (compared to £2.1 million in FY07 and £1 million in FY06).

Debt Management Plans

This new income stream (introduced in January 2007) has been in line with our
early expectations. We anticipate that revenue from Debt Management Plans will
grow to £0.9 million in FY08, from effectively a standing start.

Overall DFD Group

Debt Free Direct has made significant progress in FY07. Market expectations for
the financial year were originally at £8 million and, whilst expectations have
fluctuated significantly throughout the year, the final outcome will exceed
initial market expectations.

We believe that profitability in FY08 will be broadly in line with current
market expectations, albeit that the dynamics of the separate business areas
have changed over recent months. IVA advertising costs will exceed previously
anticipated levels and growing IVA run-rates will be consequently more expensive
(but still very profitable). However, the impact of those increased costs will
be offset by the positive impact of DFD Mortgages and the new Debt Management
Plan income stream going forward.

Andrew Redmond, Chief Executive Officer, commented:

'We are delighted that Debt Free Direct continues its rapid growth. Turnover has
grown in FY07 by 72% (compared to FY06), with adjusted PBT growing by
approximately 65%. This has been achieved despite the recent trading conditions,
which have been well documented.

We are convinced that we are in prime position to continue to strengthen our
hold on the IVA market, whether by organic growth or otherwise.'

Enquiries:

Debt Free Direct Group plc
Andrew Redmond, Chief Executive Officer             0845 296 0100
Paul Latham, Finance Director                       0845 296 0200

Numis Securities
Iain McDonald                                       020 7776 1500
Lee Aston

Financial Dynamics
Ed Gascoigne-Pees                                   020 7269 7132
Nick Henderson                                      020 7269 7114

Notes

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 processed 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 basic 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 always seeks (unlike many of its competitors who sell specific
products) to provide the best advice to the consumer and recommend them the most
appropriate solution.

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




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