In recent months there have been several Debt Management Companies that have disappeared into thin air, taking some or all of their clients money with them. Considering they were charging their clients for the service it is truly shocking to see. Especially when those clients are in debt and are probably struggling. It also resulted in some clients debts going unpaid for some time. If you have been affected by this then I feel for you.
It must be a huge blow to know that some of the money you paid hasn’t gone towards your debts. Debt is not the best thing in any case and when you have made an effort to pay it, only to find out the money has not got to your creditors it truly sucks.
Paying for Debt Management Plans
I am not sure why someone would pay for a Debt Management Plan. I wouldn’t mind anyone telling me why they do though. It seems to be money down the drain that could be put to better use. Money that could be used to pay off your debts a little faster. Then there is the risk of the companies going under although not all of them are bad. However despite all of this, if you are in debt you want to get out of it in the fastest possible time. Paying more than you need to just doesn’t seem compatible with that aim. Perhaps these fee charging organisations settle what you owe for a percentage of the actual debt. Who knows.
Getting a Free Debt Management Plan
Yes you actually can get a Free Debt Management Plan and it is easier than you think. Two examples of organisations who can provide these plans are StepChange Debt Charity and Payplan. I have used both of them and they are a lifeline if you are in debt, offering support and advice and helping you stay on track with your repayments.
StepChange allow you to get set up online. They ask a few questions about your finances and your debts through their Debt Remedy System. At the end they will recommend the different debt solutions available to you. It might be that they recommend a different solution but that is based on the information you provide. You can still choose a debt management plan if you wish.
As an example when I used the Debt Remedy system, StepChange quite rightly recommended an IVA. This is due to how much debt I am in and the amount of time it would take me to pay it back. However I was still able to set up a Debt Management Plan and I did so and ran it for a couple of months. I eventually went back to managing my own debt as I write this blog and it seemed silly of me. However I can highly recommend StepChange Debt Charity as a source for debt help.
How to get in touch with these organisations?
It’s easy. Visit the Debt Help page and follow the link for either Payplan or StepChange. Clicking on the links will take you to their websites where you can find out more.