|Top 10 Debt Management Companies
An Honest, Independent Review
Debt Management companies don't actually do anything that you couldn't do yourself.
But many people find themselves paralysed by the stress of being in debt.
If your debts are scaring you, and/or destroying your life - a debt management company may be able to help.
Despite their inflated claims, debt management companies are very rarely able to cancel your debts -
But they can relieve you of the burden, the embarrassment and the stress of dealing with your debtors.
How Debt Management Works
The debt management company will take exact details of your income, your expenses and your debts.
They will either do this over the telephone, or they will send you some forms to complete.
They will then make an assessment of how much you can afford to spend each month on your debts.
Once you agree the amount, they will contact each of your debtors and "offer" them a small monthly payment.
Be aware:- You could do all of this yourself, or with the free help of the Citizens Advice Bureau.
However, debt management companies are experienced at this, and your debtors will usually accept your "offers" if a
debt management company approaches them on your behalf. The debt management company will also try to get
each debt written-off (cancelled) - but they very rarely succeed at this.
Once each of your debtors has agreed to your offer, you will pay a single sum each month to the debt management
company - and they will make your monthly payments to your debtors.
The good thing about this system is that you make a single monthly payment, and your debtors leave you alone!
The bad thing about this system is that it is not free!
The debt management company will take a percentage of your monthly payment as their fee (usually around 15%)
So, if you work out that you can pay £100 a month towards your debts, £15 goes to the debt management company
and the other £85 goes to your debtors. Obviously this means that your debts will clear more slowly using a debt
management company than if you do it all yourself.