Debt Management Companies

Recommended Debt Management Companies

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US Debt Management Companies

Using Debt Management Companies

Many thousands of people get into debt every year for all sorts of reasons. For many people it is entirely due to circumstances beyond their control, such as family break up, redundancy, accidents or illness. This can be a new and frightening experience and it is often difficult to know where to turn for help. There are many debt management companies that specialise in helping people to repay what they owe and get their finances back on track.

However, not all of these have your best interests at heart, so it is important to understand what you should expect from debt management companies and where to find the most reliable and reputable ones. This website is here to help you with both of these things. You can find out what exactly a debt management company can do for you and you can find recommendations for some of the best ones in the UK and the US.

Understanding Debt Management And Other Debt Solutions

A good starting point is to be clear about what various different terms mean, such as debt management, consolidation, settlement, etc. Most people will have heard of consolidating debt as a way to leave you with only one payment and make your debts more affordable. This often involves borrowing more money to pay off all your old debts, which is called using a consolidation loan. Debt management is a form of debt consolidation, but does not involve borrowing any money.

In general, it is not a good idea to take on more debt as a way to pay off existing debt. For most people who take out a loan to pay off debts, they end up paying back far more than they would have under the original debts. This is because the new loans usually go on for much longer. This option is rarely the best solution so is best avoided, apart from in a few specific circumstances. The other way to consolidate your debts is through a Debt Management Plan (DMP), and this is what debt management companies can offer you.

The other solution that UK debt management companies can set up for you is an Individual Voluntary Arrangement or IVA. This is a system designed to provide an alternative to bankruptcy for UK residents and is only for people in very serious debt. You will not get an IVA if you can afford to repay what you owe. An IVA is for people with over £15,000 worth of debt who cannot keep up with the repayments on their debts. You make contributions based on what you can afford for up to five years and at the end of that time your remaining debts are written off.

Debt settlement is a service offered widely in the United States, but not in the UK. It is about negotiating settlements with creditors to settle your debts for much less than the full amount. In effect it is like the UK IVA in that you make payments towards your debts but end up writing off a large part of them.

How A Debt Management Plan Works

A debt management plan is the most common way to tackle financial problems and is a way of reducing the amount you have to pay out each month and reducing it to a single payment. You make this payment to the company who set up the DMP for you and they have to pay your creditors and deal with them on your behalf. The plan is made possible by specialist debt advisors negotiating with all of your creditors to agree new terms for paying back what you owe. This means they get interest rates frozen or reduced and often manage to have penalty fees waived too. The cumulative effect is that your debts become more affordable and easier to manage.

A debt management company will only be able to help you with unsecured debts. What that means is that they are not secured against an asset you own, such as your home. Secured debts are things like a mortgage, where if you default on the payments you could lose your property. This type of debt cannot be included in a DMP, but they are fine for credit cards, bank overdrafts, personal loans, etc.

You will also need for your debts to be to a few different creditors, usually at least two or three, depending on the company you choose to work with. If all of your debt is to one organisation, you will not normally be offered a DMP. The only other requirements are likely to be that you are over 18 and that you have enough income each month to afford a reasonable payment into the plan to put towards your debts.

With some companies you can also expect to receive help and counselling on how to manage your finances better, so ensure that you do not to fall into the situation in future when your debts have been paid off.

All debt management companies are ultimately commercial organisations so they will need to be paid for their services. Any legitimate and reputable company will be up front about what they are going to charge you and how they will get their money. Be very wary of any advert or promise of a FREE plan, as some companies make this claim but are often just hiding their fees in your monthly payments.

Recommended Debt Management Companies (UK)

(see below for US companies)

It is advisable to apply to more than one company before making a decision.

To Choice 123DebtSolutions

123DebtSolutions work with a range of companies to provide debt solutions for all sorts of situations. As well as debt management plans, IVAs and trust deeds, they can even offer consolidation loans if that is your preference.

To qualify for help you ought to have at least £3,000 worth of debt to two or more different creditors. You can apply easily from this site by completing the Online Form at the bottom of this page.

Also Recommended: Money Advice Group

Another very large and well respected group that can provide help with the full range of debt solutions. Simply visit their website and complete the Free Online Debt Test on the right hand side. You should be over 18 and have at least £5,000 worth of debt

Recommended US Debt Management Companies

Top Recommendation: Curadebt

Far and away the most highly regarded and most effective debt management and settlement company in the US. They are a very well established company, having helped thousands of US citizens to deal with debt problems over the last fifteen years. They are very experienced and offer both debt management and debt settlement services. This means they can help a very wide range of people and find a solution to suit most situations.

They are also highly reputable and will provide you with a written guarantee of the results you can expect. This is quite unusual and a good sign of the honesty and effectiveness of the company.

Just complete the simple Online Form and a CuraDebt counsellor will contact you by phone to go through your situation in detail.

Articles Of Interest:

Debt Elimination

Apply For UK Debt Help Now By Completing This Online Form

You can apply for a debt management plan, IVA, Trust Deed or consolidation loan through our approved debt advisor, 123 Debt Solutions. You will be contacted by An advisor to go through your situation.

Only Submit This Form If You Are A UK Resident

Your home may be repossessed if you do not keep up repayments on a mortgage, loan or any other debt secured on it. Think carefully before securing other debts against your home.

Advice On Debt Management Companies