How To Find Good Debt Management Companies

 Finding debt management companies is easy – but someone in financial difficulties needs to know they are receiving the best advice for handling their problems.

 The best way for a borrower to find the right debt manager is to follow a five-point plan when talking to them for the first time.

Asking each debt manager the same questions and noting the replies makes comparing the firms easy.

Here are the five key questions to ask:

Is the firm licensed by the Office of Fair Trading?

Debt management companies must have a credit licence from the OFT by law. Having a licence means the firm should follow strict guidelines in dealing with someone with debt problems.

Don't just take the firms' word that they are licensed. Take the licence number and check out the details.

Either look the firm up on the OFT web site or call 0845 722 4499.

 

Debt Management Companies

 

 

What are my debt management companies options?

 

Debt management plans are an option for someone owing money, but its not a one-size fits all solution. A good debt manager will tailor a programme to suit the borrower's specific financial circumstances.

How much does debt management cost and who pays?

The cost of debt management advice varies between different companies and organisations. Make sure each debt manager clearly states

What action he or she will take on your behalf

  • How much the plan costs – including monthly and any one-off fees
  • Who pays the costs and when
  • What happens if you miss payments

This often happens when someone wrongly assesses their disposable income or when they have a lifestyle change, like a relationship breakdown or job loss.

Missing a payment can lead to a lender seeking a charge against a borrower's home, and ultimately, repossession if arrangements to repay the debt are broken.

Shop around to compare debt management companies

Contact at least three debt managers to compare their advice and costs.

Debt management companies who have good customer service and friendly staff are easier to work with. You want someone who answers the phone or replies to letters and emails when you need information or advice.

 

 

Client Testimonials
  • We were put in touch with Pathfinder by a friend of ours when a failed business created alot of personal debt of which we had no way of being able to continue with the payments . It seemed like a jungle with no way out . Dawn Speakman of Pathfinder...
  • After drowning in debt and not knowing which way to turn I was put in touch with Pathfinder DM, through their help and guidance I am now slowly getting this under control and myself back on track, the staff at Pathfinder have been professional...
  • In early 2009, I read an article in the Salford Advertiser, for Pathfinder, a debt management company. At the time I had run up debts of 50K on various credit cards, mainly through changing jobs, along with a reduction in salary.I arranged a meeting...