What should I look out for when choosing a debt management company?
There are a number of important factors that you should look out for when choosing a Debt Management company.
- Have you been asked to pay a monthly fee and if so, how much is it (see do all debt management companies charge fees for more information)?
- Are you required to pay any up-front fees?
- In calculating your monthly payment, has the debt management company made sure you have enough to cover your essential living costs each month?
- That the organisation is authorised by the Financial Conduct Authority (FCA) and listed on the Financial Services Register.
- What are the chances of your creditors agreeing to your proposal (some creditors are known to be uncooperative)?
- How long is the plan going to last and can you realistically keep up with payments for that length of time?
- Is Debt Management the most appropriate solution for your circumstances and has the advisor considered all of the options that are available to you? For example, if you are being advised to enter a 15 year Debt Management Plan then chances are there are better solutions for you.
You can read more about Debt Management and whether it is suitable for your situation in our Debt Management section.
Debt Advice Foundation is a registered UK charity offering free, confidential support and advice on any aspect of debt, including Debt Management. If you need to talk to someone about Debt Management or would like to discuss the alternatives, please call to speak to an adviser.