What is Debt Management?
Hold on! Before you get started, have you checked if your debt is statute-barred? Don’t proceed any further without checking here! If your debt is over six years old and you haven’t communicated with the creditor or debt collector about your debt or made any payments in the last six years, you might be able to resolve your issue with just one letter. If not, let’s continue.
Take my stress away
Juggling a full-time job, children, and normal day-to-day life can be enough without handling a spiralling debt issue. This type of ongoing pressure can cause people to take drastic action or make drastic decisions.
“If only someone else could handle the debt issue, I have enough on my plate”.
Like a genie from a lamp, out pops a Debt Management Plan. You may not have heard of Debt Management before; however, if you have not been making your monthly payments as per your agreement, the suggestion of Debt Management Companies would have been mentioned in some of the chaser letters you receive.
Are debt management plans free?
Firstly, it’s crucial to recognise that although a debt management plan might appear to be a perfect solution for addressing your debt problem (and it might well be), it’s important to understand what the Debt Management Companies gain from it. There’s very little in life that comes without cost.
Debt management companies will earn money from you directly or indirectly. Like any other profit-making business, managing your debts is in their interest. Due to this, it’s also essential to know if there is not enough money to be made from managing your debts, they may refuse to help you. Check out the article in the purple box below to fully understand debt management, how the companies make money and what you need to be aware of to make a fully informed decision. Then head straight back here; we have much to discuss.
Is a Debt Managment Plan (DMP) worth it?
What does the StepChange do?
By now, you should be very clued up on debt management. You know what you’re getting into, and you know if it is right for you or not. You must take an even closer look and consider logically “what’s in it for them”. Be sure to properly read up on the companies you plan to engage with, including charities, to understand what motivates them.
StepChange Debt Charity is an example of a debt management company. Even a debt charity like StepChange has something to gain from managing your debt, and we cover this in detail in the article linked below. As we always say, we are just here to provide you with the facts; that way, you can decide knowing clearly where you stand.
StepChange - It's not as simple as free advice
The decision is yours
The key to successfully handling a financial difficulty is to gain as much knowledge as possible and maintain a calm mind. We’ve got you covered on both counts.
We have no affiliations with any creditors or debt collectors, so you can be confident that the information we provide contains all the pros and cons: no bending or twisting information.
Debt Management may be perfect for you, or you may feel that after reading our articles, such as How to reduce your debt repayments using Token Payments, you are ready to tackle your situation yourself. We have your back; remember, you’re not alone.
Our community is also here for you should you need that extra support. We’ve compiled some articles below to help you through this challenging time.
