What's in it for the Debt Management Company?
Hold up! Before you get started, have you checked if your debt is statute barred? Don’t go any further without checking here! If your debt is over six years old and you haven’t spoken to the creditor or debt collector about your debt or made any payments in the last six years, you might be able to solve your issue with one letter. If not let’s continue.
I just want someone else to deal with my debt stress
Juggling a full-time job, children and just normal day to day life can be more than enough without having to handle a spiralling debt issue. It’s this type of ongoing pressure that can cause people to take drastic action or make drastic decisions.
“If only someone else could handle the debt issue, I have enough on my plate”.
Like a genie appearing from a lamp, out pops a Debt Management solution. You may not have heard of Debt Management before, however, if you have not been making your monthly payments as per your agreement, the suggestion of Debt Management Companies would have been mentioned in some of the chaser letters you are sent.
Is Debt Management free?
First things first, it’s important to understand that whilst Debt Management may seem like an ideal solution to tackle your debt issue (and it may be), it’s important to know what the Debt Management Companies get out of it. There’s very little in life that’s free.
Debt Management companies will earn money from you directly or indirectly. Like any other business, it’s in their interest to manage your debts. Due to this, it’s also important to know if there is not enough money to be made from managing your debts, they may refuse to help you. Check out the article in the purple box below to fully understand Debt Management, how they make money and what you need to be aware of in order to make a fully informed decision. Then head straight back here, we have much to discuss.
All you need to know about Debt Management
What about StepChange Debt Charity?
By now you should be super clued up on Debt Management. You know what you’re getting into and you know if it is right for you or not. It’s important that you take an even closer look and consider logically “what’s in it for them”. Be sure to properly read up on the companies you plan to engage with, including charities, to understand what motivates them.
StepChange Debt Charity is an example of a Debt Management Company. Even a debt charity like StepChange has something to gain from managing your debt and we cover this in detail in a linked article below. As we always say, we are just here to provide you with the facts, that way you can make your decision knowing clearly where you stand.
StepChange - It's not as simple as free advice
The decision is yours
The key to successfully handling a financial difficulty is to build up as much knowledge as possible and to make sure your mind is calm. We’ve got you covered on both parts.
We have no affiliations with any creditors or debt collectors so you can be confident that the information we provide you is complete with all the pros and cons. No bending or twisting information.
Debt Management may be perfect for you, or you may feel that after reading our articles for example like the Token Payment Method, you are ready to tackle your situation yourself. We got your back, just remember you’re not alone.
Our community is also here for you should you need that extra support. We’ve compiled some articles below that we believe will be help you through this challenging time.