It can be difficult choosing a Debt Management Company, because there are so many of them out there. In this guide I take a look at the questions you should be asking when selecting a Debt Management Company.
I also provide information on where to get Debt Advice, from the numerous free organisations who can help you. I also discuss the importance of not feeling pressured into a particular debt solution.
Selecting the right Debt Management Company is important because you want to solve your debt problems with the least hassle, and within the shortest amount of time. Any decent Debt Management Company will go through all of the available options, so you are informed about what you can do in your situation.
Choosing a Debt Management Company – The Questions to ask
- How Long will your plan last for? If for example it will take you ten years to pay your debt back, it might not be the most appropriate solution for you.
- Does the Organisation you are considering hold a valid Consumer Credit License? Every Debt Management Company must hold this license. They are regulated by the Office of Fair Trading.
- Will you be able to maintain the monthly payment?
- Do you have enough to cover your living costs each month after your debt payment has been made?
- Is the Debt Management Plan the best solution for you?
- Have all other options been explored?
- Will you pay any up-front fees?
- How much will your plan cost you?
Debt Management Plans – Finding out more
There are a lot of things to consider when you are thinking about a Debt Management Plan. See my post on finding out more about Debt Management Plans to get started.
Get a Debt Management Plan
If you would like to talk to someone about setting up a Debt Management Plan then I can recommend several options. Visit the Debt Help page to find out where you can get help with your debts. I would recommend StepChange as a good place to start.
Speak to several companies
It pays to compare so they say. It is worth speaking to a number of organisations and then making your decision based on which one you feel most comfortable with. The free options are very good and should not be overlooked. For example StepChange can offer you a free debt management plan. The aim is for you to get out of debt as quickly as possible.
Don’t be pushed about or be pressured into something
What I would say to you though is, don’t feel pressured into anything. If you feel you are getting the hard sell, end the conversation and move on. Being in Debt can be an emotional time and you might feel you need to act quickly without really thinking things through. It is an important decision, so get the help you need but don’t settle for something just because you have been pressured into doing so.