This Debt Advice Applies to Individuals in the UK with Personal Debts
A debt management company are companies that help you design a plan and agreement to better manage your debts and finances. It helps you pay your outstanding debt in an affordable way.
If you are financially struggling to repay your outstanding debts on credit cards, mortgages, or other types of finance. It’s worth consulting the help of a debt management company, who can assist you with the process of paying back your loans and handling your debts more manageable than if you deal with it alone. This could also prevent you from spiraling further into debt.
FAQs on Debt Management Companies
Do debt management companies require fees?
Some debt management companies charge fees for their plans. The fees differ depending on the company. However, it is usually around 17% of your monthly payments. Besides, a debt management plan can costs you an additional £4,000.
Here in Debt.org.uk, we offer free debt advice and help to explore your options. We will assess your situation to determine which debt approach would suit you best.
What does debt management company do?
Debt management companies will scrutinize your finances to see how much you can afford to pay for your debts. This is after satisfying all the priority bills and essential living costs. They facilitate payment to your creditors and act on your behalf. Also, they keep track of your finances and progress while on a certain program.
Do debt management plans harm my credit score?
Once you’re on a DMP, your original payment is reduced. This indicates partial payments on your credit file which remains for six years that is also part of your credit score
Debt management companies – promotion rules
Debt management companies must also comply with rules and guidelines set by the Financial Conduct Authority.
The advertising standards state that:
- Debt management companies are not allowed to advertise a product or service as “free”, “without charge” or similar if the consumer has to pay anything other than unavoidable charges, such as response and delivery costs.
- Financial products must be presented in a way that can be easily understood by the audience, rather than take advantage of consumers’ inexperience.
Getting into piles of debts are often caused by an unfortunate change in terms of financial circumstances. These can be a result of reduced income, divorce or separation, job loss, vulnerability, illness and other misfortune that greatly influences a persons finance.
We cater to clients from all walks of life and offer them help and advice on how they can deal with their circumstances. We have over 85, 000 clients both from high and low incomes who were able to manage their situation better after using our service and taking our advice.