Debt Management

Please ensure that you consider all of your options before you decide to enter into any kind of Debt Management Programme (DMP)

Debt Management has developed as a general term to cover lots of situations where people with debt problems ask a third party organisation to help them sort out their debt problems. There are a whole range of organisations offering debt advice and debt management solutions. The "free advice" sector includes Citizens Advice and National Debtline; companies who try to get people to help themselves by providing the sample letters and general support for people to sort out their own debt problems. There is also a "Charity" sector such as CCCS offering debt management programmes which are funded by some of the creditors.

By far the largest debt management sector is the "fee charging" or commercial debt management companies. The commercial companies charge the customer a monthly fee to manage all of his unsecured debts and negotiate with creditors on the debtors behalf. Some of the larger debt management companies have a reasonable record of helping people sort out their problems. However it should always be noted that you MUST satisfy yourself that you are dealing with a reputable company which has significant financial and human resources to support you. There is actually NO real restriction upon who can set up a debt management advice business in the UK or the amount of fees which can be charged. There are debt management companies in the UK who charge up to a £1000 simply to set up the arrangement whereas others charge very little for the same service.

Anyone contemplating entering into a debt management programme should always ask themselves the same questions :–

In reality the majority of people faced with debts which they are struggling to repay will be best advised entering into a debt management arrangement, as this is likely to be the most appropriate debt solution to their debt problems. However for those people in debt who have more than £15,000 in unsecured debts then an Individual Voluntary Arrangement may be more appropriate and far quicker in resolving the overall debt problems.

It is also worth noting that even if you are currently in a Debt Management Plan then it still not be too late to act to get your debt problems resolved in a shorter timescale without any interest and charges being applied.

If you are in any doubt as to which debt option best suits your particular circumstances then Financial Guardian is able to advise upon AND complete the most appropriate solution upon your behalf.

Contact us now on 0800 43 50 43 or complete the enquiry form for an immediate opinion. It could save you a lot of time and money.