With a large majority of the population opting for personal loans without any thought-out plans on how to repay them, many people are finding themselves drowning in debt.
As a result of this, many debt management companies have started popping up in the UK.
It can definitely be a good idea to get debt advice from a professional but it’s important that you seek this advice from a firm that is qualified and has your best interests at heart.
When you’re looking for a company to manage debts, it can be difficult to tell whether a certain company would be a good fit for you or not.
The first thing you should be on the lookout for is that the company is completely transparent about their charges and fees. If a company is surprising you with hidden fees and additional charges, they’re not trying to get you out of debt, they’re trying to keep you in it.
Secondly, it’s important that you seek debt advice from a debt management company that is understanding and sympathetic.
Their representatives should be individuals who understand that managing debts and dealing with them can be overwhelming and confusing. Accordingly, they should be dealing with you in a friendly and sympathetic manner.
If you approach a debt management company and are met with a representative that’s cold and gives unclear answers, you should think twice about entering into a debt management plan with them.
Thirdly, it’s extremely important when looking for debt management companies that you only deal with companies that are authorised and regulated by the Financial Conduct Authority (FCA).
This is because the Financial Conduct Authority has guidelines put in place which ensure that you are treated fairly.
It also helps you steer clear of companies which are operating illegally and might be trying to take advantage of your vulnerable situation.
Hence, always ask for their credentials before entering into any type of agreement with them.
You can choose to get help from free debt advice services or you can get help from a private debt management firm which charges you a fee as well.
In the UK, some debt advice companies that don’t charge a fee include Stepchange and Payplan.
I’d highly recommend getting free debt advice rather than paying a private debt advice service that charges you a fee.
While many people believe that private debt management firms offer better advice and suggestions, I don’t believe that this is the case.
Also, it isn’t particularly a great decision to opt for a debt management company that charges you money for their services when you’re already in debt.
Free debt management companies will give you free debt advice and help you throughout the entire DMP process. You can also contact these companies for help and information regarding other matter pertaining to debt as well.