Today's advice is all about Debt Management Companies.
The first thing to note here is they are not councillors and although you may dread picking up the phone someone isn't going to tell you there's a quick fix for your debts.
As mentioned in a previous post Where Should I Go? debt management companies need to be approached with care, they are going to want to know every single penny that you spend each month, and if they feel you are spending too much on your shopping they are going to tell you to make cut backs.
As well as this you will be advised that your creditors could sell your debts on, this is in our opinion one of the major pitfalls of many debt management companies. After looking at your income and expenditure you may be advised to make a "token" or minimum payment, avoid this at all costs ! Doing this opens you up for your debts to be sold on, if you don't make an effort with your creditors they won't make an effort with you.
As well as this many Debt Management Companies actually charge a percentage or a monthly fee for sorting your debts out, again don't do this firstly why pay more money to get out of debt and secondly why pay when there are completely free companies doing exactly the same job as the big for profit DMC's.
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