Free Debt Management Companies – Complete Review

Are you troubled by debts and unsure how to handle them? This is a common problem. In fact, more than 170,000 people visit our website every month looking for guidance on managing debts.

This article, ‘Free Debt Management Companies  Complete Review’, aims to answer your questions and calm your fears about debt. We’ll be talking about:

•  Steps to take when you’re worried about debt
•  Five free debt management companies in the UK
•  How to choose a debt management company
•  Rules that debt management companies should follow

We know how hard it is to be in debt; some of our team members have been in the same spot. We are here to help you find the best way to manage your debts and find the right free debt management company.

5 Free Debt Management Companies in the UK

1. Citizens Advice

Citizens Advice is working hard to help people struggling with debt. They provide debt advice and other services. DMP, bankruptcy, and other debt solutions are on their list of issues they can help you with as well. 

You can even use citizen debt advice management to find other companies that offer advice with debt. They are not fee-charging, meaning you get their services and debt advice at no cost.

You can visit their website to learn more. 

2. National Debtline

The National Debtline is an organisation that has been working for years to educate people on financial and debt solutions. You can call on their free helpline to get free insolvency advice, or you can also take their ‘debt test check’. 

The phone number and other contact detail are mentioned on their website. So you can check it out to get all other relevant information, such as their fees, debt solutions and more.

3. StepChange Debt Charity

The largest debt charity in the UK works to provide debt management plans without charging fees. Their advisors are well-trained and will work to get you the best DMP available or recommend the best debt management companies. 

UK StepChange debt charity was formerly known as Consumer Credit Counselling Service (CCCS) but changed its name in 2012.

Stepchange debt charity is located at wade house Merrion Center, Leeds Ls2 8ng. You can visit their website to learn how they can help clear your debts.

4. Shelter Debt Management

Shelter Debt Management UK is not a direct DMP service provider but more of a service broker. However, they are a registered charity. They are working to provide debt and financial assistance to homeless people. 

This organisation has no fees because they are specifically working for the homeless. 

For a DMP, Shelter Debt Management might refer you to another debt charity. Check them out and learn how to get help by visiting their website. Their email address is [email protected]

5. Christians Against Poverty

Christians Against Poverty is totally a donor-funded charity. Hence, they have no fee-charging or monthly payment scheme. They are providers of DMPs and will ask you debt questions and arrange a meeting with your creditors to make a strategy for the DMP. 

You can contact Christians Against Poverty through email, phone, or post. You can also visit their website to learn more about their work in the community.

Here’s a summary of the top debt management companies in the UK that offer free debt advice,

What to Look at When Selecting a Debt Management Company?

Many things are important when selecting debt management companies. I have listed some points below which will help you make a sound decision in the selection of a debt management company. 

1. Legal Structure

The first important thing to check is the legal structure of the company. For instance, start by looking at the entity of the business, whether it is a partnership or a limited company. 

Secondly, verify that it is registered in England or Wales and has a registered office as well (This reduces fraud. Also, check out their website). 

Lastly, while getting debt advice or a DMP, please check that their debt repayment strategies are based on legal and moral values and that no fraud or shady dealings are taking place. 

Past client testimonials might serve as a strong indicator of their business operations.

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2. Debt Management Plans (DMP)

One important thing is the DMP itself. The plan that is presented in front of you. See to it that it is a sound strategy, has feasibility, and is based on reality. 

You can get firsthand advice from industry experts on DMPs so you can get rid of any doubts that you have. Apart from that, the DMP must work for you as well. If you think it won’t work for your financial situation, look for another company. 

3. Costs

Costs might be a crucial element for many people out there. Quality services, obviously, cost more compared to mediocre service. However, while we’re discussing debt charities that are cost-free, you may occasionally encounter some indirect costs. 

Look carefully at the fees, budget for them, and stick only to what you can afford to pay. Nonetheless, the fees of a private company are quite high compared to the indirect fees you will be paying if you choose a debt charity. 

I would strongly suggest not going over your budget as that would put high financial restraint on you. 

Debt Management Companies Rules

Remember, all these companies are authorised and regulated by the Financial Conduct Authority (FCA). This means that they have permission to provide debt adjusting and debt counseling services.

In addition, they have to follow strict advertising rules when promoting their services as free.

For example, a debt management company cannot advertise a product or service as “free”, “without charge”, or similar if the consumer has to pay for a DMP.

They must also assess your financial situation and offer a debt management plan that clearly states the following:

• The exact details of the debt management plan
• The total monthly costs (including associated fees)
• The total amount to be repaid and the set timeline

Lastly, verify that your creditors are fully on board with the repayment plan. Some have been known to demand full debt settlement even if you’ve agreed to keep up with payments.

Thousands have already tackled their debt

Every day our partners, The Debt Advice Service, help people find out whether they can lower their repayments and finally tackle or write off some of their debt.

Natasha

I’d recommend this firm to anyone struggling with debt – my mind has been put to rest, all is getting sorted.

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Reviews shown are for The Debt Advice Service.

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