The best debt management companies in 2021
There are hundreds of debt management companies offering their services in the UK. However, before choosing one, it’s important to find out exactly what they can do for you. Whilst some debt management firms charge fees, others offer free debt management and advice to their customers. Read on to discover the best debt management companies in 2021.
What is a debt management company?
If you’ve decided to take steps to deal with your debts, you may be thinking about reaching out to a debt management company. A debt management firm can help you to pay off the money you owe by combining your debts into a single monthly payment, which will be shared amongst your creditors. They will assess your finances and consider how much you can afford to pay each month towards your debts once your living expenses have been taken care of. Often, they will manage the payments to your creditors for you. This means that you won’t need to communicate with your creditors at all whilst you’re repaying your debts.
The 5 top debt management companies and advisers in the UK
Whilst there are many debt management companies in the UK, not all have your best interests at heart. Some care more about making money from you than they do about helping you deal with your debts. The following companies have a great reputation for providing expert debt management and advice for free. These organisations use a variety of techniques and can help you organise a debt management plan that works for you.
- Citizens Advice Bureau (CAB)
- National Debtline
- Consumer Credit Counselling Service (CCCS)
- Step Change Debt Charity
- Debt Assist UK
Who can get a Debt Management Plan (DMP)?
Many people can get a DMP to help them pay back the money they owe. Whether you’ll be approved depends more on your disposable income than the level of debt you have. This is because you’ll need to make regular monthly payments to your creditors. You’ll need to make large enough payments to allow you to clear your debts within a reasonable amount of time. A debt management company can review your finances and help you to create a budget to see if a DMP is the right debt solution for you.
Considering a DMP? Get free debt advice
Before getting a DMP, you should always get free debt advice first. Entering into a DMP can have a significant impact on your life since you’ll need to use a portion of your disposable income to pay back your creditors. Your credit score may also be impacted since you’ll be paying back less than the agreed amount, and this will be reported on your credit report. Therefore, we recommend getting free debt advice before you consider getting a DMP. An expert debt adviser will provide you with tailored and impartial advice to help you learn if a DMP is the best option for you.
Contact Debt Assist UK to discuss your finances with one of our experienced debt advisers. We can discuss the various debt solutions available to you and help you decide which is right for you.