Managing debt effectively is a dream for many. By doing that you take control of your financial life and make it much easier. However, this requires planning and strategy.
Today I will be discussing the best debt management companies with the best services and names in the industry. You can easily select any of the recommended companies and take a step forward towards your financial freedom!
Let us begin.
What is Debt Management?
Debt management is a term related to personal finance technique, which helps to manage debt and control it. A Debt management plan is a technique through which you can comprehensively try to manage your debts.
A Debt Management Plan is an agreement between a debtor and a creditor. This agreement is used to define terms of an existing or a new debt that might take place in the future.
Debt Management Plan is also used as a contingency planning technique and as well to safeguard the interests of both parties. The agreement or plan can be drafted through debt management companies.
Debt management companies take a fee-charging for their services and draw out a plan for you and provide debt advice and solution as well.
Why Do You Need a Debt Management Plan?
Many things emphasize solid personal DMP. These factors play a great role in your financial life and I have listed some of them below:-
One of the most important things in your financial life is your credit, Loans, finances, and mortgage all are done after reviewing your financial score or the credit report that is placed in your file with all the relevant credit history and information.
Your debtors hold much importance to your credit score, as it is a reflection of trust and management.
DMP helps you to improve your credit rating and income. It also saves you from mismanagement of debts which surely shields your credit rating.
If you are struggling with debt and need a solution to live a debt-free life without any money problems, DMP and debt counselling also play an important role here.
The first step towards achieving your financial freedom is getting out of the debt spiral. DMP works to enhance management and make it effective to make debt payments. This automatically results in the elimination of bad debt.
However, getting into a DMP doesn’t mean that you will instantly have financial freedom. This might be the first step towards it. Make sure that you take action to achieve your goals through proper advice of debt counsellors and by getting debt help.
Debt Management Companies
To get proper debt solutions, I would advise you to seek out a debt management company.
One of the important services of these companies is to handle debts on your part and there to make debt management plans. The debt counsellors provide good money advice on financing and income as well.
These companies also provide various services, such as making monthly debt payments, handling your bank account or income.
What to Look at while Selecting a Debt Management Company?
Before selecting debt management companies or debt management plans, do make sure that they are authorised and regulated by the financial conduct authority of the government of the UK.
Do see that they are a legal organization and are registered in England as a limited company or a sole company. (Tip: Do seek out if they have a registered office or website)
The second thing you would like to focus on is the debt management company and you are on the same page. That means your demands meet with the services that they support.
Your demands might be concerned with the following:-
First of all, you should see what services are being provided by the debt management company. Management companies have several different services in their portfolio that relate to debt solutions, such as money advice, management plans, contingency planning, etc.
Choose the company that is right for you and support your demanded debt management service.
The second important thing is the costs that are affiliated with debt management companies. You need to weigh all the costs that might be incurred, the related direct and indirect costs. After this, make a prudent decision of selecting a debt management company.
I would advise you to not choose any debt company whose fees exceed your budget. Stick with the fees that you can afford to pay
Last but not least. The strategy and the content of debt management might be the most important thing. If the company is not providing the best debt solution or money advice to you, all of your spending on fee-charging and expenses might be in vain.
I would advise that you learn a little about personal financing and accounting to make a sound decision regarding the debt advice that the company gives you.
Top 5 Debt Management Companies in the UK
Gregory Pennington is a well known UK debt management company that provides some amazing services to people, such as, Plans, IVAs, Debt solutions, and money advice. The company is registered and regulated in the UK.
The management planning cost stands at 18.5% of the monthly payment and with that Gregory Pennington provides handling of money and monthly payments. They might also take care of your creditors if you ask for that.
This is the link to their website. It holds all the relevant information.
Carrington Dean Group
Carrington Dean group is ranked at the top in debt management companies. They have some of the best debt advice counselors that help people with debt strategy and debt solutions.
Carrington dean group charges 15% on all monthly payments. This is lower compared to the above-mentioned institution, however, both of them are excellent providers in this industry.
This institution is known for its high-quality customer care service, quick money advice service, and debt solutions
They also provide IVA planning and advice and other services that might relate to your lenders or creditors. You can check out more on their website by clicking here.
ACME Credit Consultants Ltd
The ACME credit consultants work on vast areas in debt and financial planning. They cover bankruptcy, IVAs, management, consultancy, money advice, debt advice, and much more.
They are registered in the UK as a home company and have been working for years as providers of sound advice to help people struggling with money in their financial lives.
Their monthly fee-charging rate stands at 20% on monthly repayments. They are costly but they do provide amazing money solutions.
Check their website by clicking here and find out the process to apply.
Harrington Brooks UK
Harrington Brooks has also been working in this industry for years. They provide bankruptcy, IVA, debt relief orders, and much more. The monthly payment rate stands at £80.
The fixed-rate is an attractive scheme for many. The advertising rules might be able to attract a lot of customers for this company.
Not only because of the advertising scheme but also due to the alluring services they provide.
Their website address is this.
StepChange UK Debt Charity
Stepchange Debt Charity is the single most important registered charity organization that is working day and night in helping people to improve their financial life and that too for free! There are many more charities that deserve our appreciation, however, Stepchange is a big name among them.
Stepchange debt charity provides free debt advice, money management planning, and much more. It has given a tough time for all the debt management companies that are working out there and still exists to do so.
I would highly recommend that you at least once visit their website.
Do Debt Management Plans Work?
Yes! If you properly execute them and hold on to the core principles of debts. You might be able to get the financial freedom that you have been starving for.
Are all Debts Manageable?
An effective strategy makes it easier to manage debt, however, at times some debts are too large or complicated to handle on your own. Such as corporate financing, in these cases, professionals are hired to manage the debts.
Where to Get Free Debt Advice in the UK?
You can use national debtline. National debtline provides much assistance in advisory relating to debt and management. You can also email them at their respective email address or call them on their phone number from Monday to Friday.
What are the Fees of Debt Management Firms?
There are different fees for different services and plans. You can check them out on the company’s website.
Is Individual Voluntary Agreement the same as Debt Management?
No. IVA is not similar to Debt management. IVA is signed to save you from bankruptcy and manage your debtors and creditors. I have covered IVA in great depth and you can check it out on my website by clicking here.
Wrapping it Up
Choosing a debt management company is a tricky task, however, if done properly you might be able to land the best deal.
Whatever organization you choose, do see that they are working on a legal frame and are authorised by the financial conduct authority and are providing sound money advice service.
I wish you luck in choosing your partner in your financial money life.