Debt Managment Companies

If you need help with your finances and are looking for practical advice on how they could be better managed, or your debts reduced, organisations called Debt Management Companies, such as the Consumer Credit Counselling Service (CCCS), can help you. Debt management companies, also known as Money Advice Agencies, can negotiate with your existing or potential lenders for lower interest rates, or help if you have been unsuccessful applying for a loan on your own. Debt management companies rearrange and manage your debts on your behalf, requiring you to make just one monthly repayment which will be passed on to your creditors. If your finances are being handled by a debt management company, a charity, or have proof that you are following a Debt Management Plan (DMP), lenders may be more inclined to lend you money.

Unlike charities which offer similar assistance, debt management companies often charge a fee for their services. Do not be misled by companies that claim to be non-profit, but which request a high 'voluntary' charge, which in many cases is actually obligatory. Most debt management companies take a cut of the money you give to them to repay your creditors, which can add several thousands of pounds to your repayments over the course of your repayment term. Remember that it is not necessary to pay for these services, since many organisations offer similar assistance free of charge.