One of the most well-known debt charities in the UK is Step Change. The charity is often recommended by Martin Lewis, one of the most iconic money advisors on our screens. In this post, we will cast our magnifying glass over the Step Change debt solutions to help you decide if you should use them.
Read on to uncover more, including Step Change debt charity reviews and FAQs.
Who Are Step Change UK?
Step Change UK is a debt charity that provides free debt support and advice to anyone who lives in the UK and is struggling with debt. Last year alone, Step Change claim to have helped over 600,000 people struggling with their finances.
They welcome debtors to get in touch and discuss their problem with professional advisors, who can then help them with their budgeting and recommend the most suitable and advantageous debt solution to get out of debt.
Step Change is funded through donations from the UK Government, banks and individuals, and the charity is regulated by debt industry groups.
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Is all this information starting to feel overwhelming? Don’t panic! I’ve put together a 4 question debt calculator so you can quickly and easily find the best solution for you. Answer the four questions now.
What Debt Services Do Step Change Offer?
Step Change offer more services than the average UK debt charity. Whereas most charities can only offer debt advice, Step Change go the extra mile and offer:
- Free debt advice
- Debt Management Plans
- Individual Voluntary Arrangement (IVA)
- Debt Relief Order
- Bankruptcy advice
- Scottish debt solutions (see our Step Change Scotland review for details)
A Debt Management Plan is one of the popular services at Step Change. These are agreements between yourself and your creditors (via Step Change) to pay a fixed amount each month. Often, the creditors agree to halt interest on your debt as long as you keep up with the repayments.
The only drawback to a Debt Management Plan is that creditors can change their mind because they are not legally binding. The better news is that Step Change can try to get you a Debt Management Plan and it won’t cost you anything!
Step Change Debt Charity Reviews
Step Change debt charity reviews are mostly outstanding, especially on Trustpilot. Online you can find lots of excellent reviews on Step Change, such as:
“Stepchange have been brilliant all the way through. They have been helping myself for 3 Years now. Everyone you speak to, has the knowledge and shows great empathy towards your situation.”[Trustpilot]
But everyone has their critics…
“At first everything was good, then it went downhill. I called them to make a change to my DMP I never received the email review. I’ve tried calling, engaged for 3 days really?“[Trustpilot]
Your Step Change Questions Answered…
Below you can find the most common questions people want to ask when thinking about contacting Step Change UK:
Is Step Change a legit charity?
Absolutely, Step Change is a legitimate registered charity and are monitored by the Financial Conduct Authority (FCA).
How does Step Change work?
Step Change works by debtors contacting them for guidance on what to do when debts are causing stress and anxiety. Once Step Change advisors understand your specific situation, they can recommend debt solutions that are best for you.
Step Change can also help you with monthly budgeting and your financial knowledge to prevent debts from happening again.
Is Step Change a good idea?
Step Change is a fantastic idea for lots of debtors. They provide free help and will even speak to your creditors on your behalf. And because many of their debt solutions are fee-free, you could save money by choosing Step Change.
If you look up Step Change debt charity reviews online, you will see that so many people think Step Change is a good idea.
Will Step Change affect my credit rating?
Some Step Change debt solutions, like a Debt Management Plan, may affect your credit rating. But once the plan has ended and you have paid off your debts, these creditors will eventually fall off your credit file.
Can Step Change stop interest on my debt?
Although some debt solutions may aim to stop interest accumulating on your debt, there is no 100% guarantee that Step Change will be able to make this happen. Many times, they are successful in getting interest to stop.
Will Step Change stop my creditors from contacting me?
Some of the debt solutions will stop your creditors from contacting you, but others may not provide this guarantee. A Step Change DMP is one solution that doesn’t guarantee that annoying debt calls will stop instantly or at all.
What debts can Step Change help with?
Step Change can help with unsecured debts, such as credit card debt, personal loan debt, utility bills debt and much more. They can help with persistent debt where creditors keep sending you letters too.
Can Step Change agree an IVA for me?
Yes, Step Change has an exceptional success rate at getting IVAs for their debtors. In fact, the success rate is advertised at 98%. The reason this is so high is because of their good work, but also because they only recommend this debt solution when it is applicable to debtors and the number of debts they have.
What Does Money Nerd think of Step Change UK?
We think Step Change is one of the best UK debt charities. One of the many reasons for this is because they provide debt solutions for free which often cost when you use debt management companies. They are a debt charity that go beyond helping with free debt advice.
And for that reason, we recommend using Step Change if you need debt help. But remember, you can also get useful information from us at Money Nerd for free as well!
Contact Step Change
StepChange Debt Charity