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You may be surprised at how much you can achieve without the help of a debt management company. Many people negotiate reduced payments with their creditors even getting them to freeze interest and charges on their accounts. If you have decided to go it alone, the following article will provide you with valuable advice on how to do this successfully.
How much does a debt management
plan cost?
The costs involved with debt management plans can vary considerably. In some cases, up to 18% of your monthly fee goes to the debt management company, obviously increasing the amount of time it takes to pay off your debts. Other debt management companies do not charge a fee at all; meaning 100% of your monthly fee gets divided amongst your creditors.
Is it REALLY free?
Yes, it is. These debt management companies are paid instead by your creditors who give them a percentage of the amount collected for them. It is beneficial all round; Your creditors get back most of what they are owed, which they wouldn’t if you declared yourself bankrupt, the debt management company receives a fee for their services and best of all, every penny of the money you pay goes towards paying off your debts.
Despite this, some people still opt for the fee-taking debt management companies. As you can imagine, the debt management companies who offer their services for free are very popular – and busy – so some have found it quicker to arrange their debt management plan through a fee-taking company.
What to do now
You will find a comprehensive list of debt management companies in our directory who can help you get started with a debt management plan. You may also want to consider contacting the creditors yourself. You may be surprised at how much you can achieve without the help of a debt management company. Find out more by reading our ‘Debt Management DIY’ article.
Helpful debt management plan links
Debt management DIY
Debt management plan
Negotiating with creditors
How can a debt management company help me?
Debt management alternatives
Additional help
Bad Credit Remortgages Sussex
Find impartial advice and information on bad credit remortgages at 1000mortgages.co.uk - where whole of market mortgage brokers do the searching for you. Also provides property investment and landlord information.
Remember, Debt Advice 4 Free is a completely free, impartial service. Although the information on this website is provided by industry experts, it should never replace the advice of a debt adviser who understands your individual circumstances. You can visit the directory section of this website to find a list of companies offering these services.
What is debt consolidation?
Debt consolidation simply means replacing multiple loans with one new loan. If you have debts with different creditors, you can combine them into one loan using a debt consolidation loan.