Article Side

Online Article Directory!

Hello Guest! Login or Register to submit articles!

How to choose the right debt management company

By James Falla Subscribe to RSS | November 30th 2011 | Views:
loading
 
  



There are many different debt management companies. We suggest the things you should consider when choosing which one to help you solve your debt problems.

When looking for advice for solving a debt problem many people will first turn to the internet.

The web is an excellent place to find information about debt solutions.

However, with between 300-400 debt management companies in the UK, the results you are given by a search engine will probably include a huge number of different sites.

There have also been recent reports in the news about some rogue debt management companies who have provided poor service.  Choosing which advice to take and the company to trust can therefore be difficult.

You should use the following advice will help you make your choice and get on the right road to becoming debt free.

Licensed by the OFT

The first thing you need to do is check that you are dealing with a properly licensed company.

Any company and charity which provides advice or solutions for debt problems must have a consumer credit license issued by the Office of Fair Trading (OFT).

The OFT take the licensing of debt management companies very seriously and have recently taken away the licenses and closed down various companies who do not act in the required way.

 

The license number should be clearly displayed on the web site you are looking at. You can check the license is genuine by logging onto the OFT website and searching on the license number.

A properly licensed advisor should explain the different debt solutions available to you including a debt management plan (DMP), individual voluntary arrangement (IVA), Debt Relief Order and bankruptcy. They should help you understand the advantages and disadvantages of each in the context of your financial situation.

If you cannot identify the company’s license number then you should steer clear of the organisation.

Free v Fee

All reputable and licensed debt management companies should give you free unbiased advice about the debt solutions available to you. You should never have to pay for initial advice.

If you then decide that a debt management plan (DMP) is the right solution for you, you need to consider whether you want to pay for help to implement this.

Charities like the CCCS do not charge a fee to help put a DMP in place for you.

This is therefore initially a very attractive option. However, many of the services are provided on line and you might struggle to speak to an advisor in person. As a result mistakes can be made and a poor solution implemented which will not resolve your problem.

On the other hand, if you use a commercial debt management company, you will always speak to an advisor and should get a more personal service. However, you will be charged a fee for this.

There is no evidence that a using a charity to implement a DMP will give you any advantage in terms of getting interest and charges frozen or preventing further action being taken against you such as a charging order against your property.

In fact, the commercial debt company may be able to do better in this area as they have more time and resource to be able to keep working with your creditors until an agreement on interest is reached.

The IVA option

If you decide than an individual voluntary arrangement (IVA) is the right solution for you, you cannot implement this by yourself. You must use a licensed insolvency practitioner (IP) to help you.

Generally you get access to an IP by speaking to a reputable debt management company who will first check that an IVA is suitable for you.

You will not be charged a direct fee to complete an IVA. Your IP will be paid fees late but these come out of the payments you make and you do not have to pay any extra to cover them.

The fees charged are regulated by the creditors and will generally be the same whichever IP you choose.

Some companies will ask you to pay an instruction fee to prepare your case before it goes to your IP. There is no need to pay a fee like this. You will not get any better service and it is no more likely that your IVA will be accepted by your creditors.

As such, you should base your decision on which IP to use on whether or not you feel comfortable with the person you are speaking to and company you are working with.

Feel comfortable

At the end of the day, the most important thing when dealing with your debt is to work with a licensed organisation which you confident will do a good job for you.

An ideal way of doing this is by getting a recommendation. However in the absence of this, one way of becoming familiar with how a particular company works and the advice they give is to follow their experts on an on-line debt forum.

If you do not feel you have the time to do this, as a minimum you should speak to 2-3 different debt management organisations.

In the light of the advice already given above, you will then be able to weigh up what you have been told and the solution suggested.

You should then choose to work with the organisation which you feel most comfortable to work with.

James Falla - About Author:
James Falla is a debt management solutions expert and author. He has fourteen years of experience of implementing debt management plans for people who are struggling with personal debt.

In 2004 James co founded Thomas Charles a specialist debt management solutions company where he personally helped hundreds of clients implement debt management plans. James is now the managing director of and senior debt advisor for Wilmott Turner Financial Services which operates debt solution websites such as http://www.beatmydebt.com/.

Share on Facebook Tweet It Stumbleupon this post This post is delicious !

Article Source:
http://www.articleside.com/finance-articles/how-to-choose-the-right-debt-management-company.htm

Related Finance Articles Subscribe to RSS

Consultants for debt consolidation
Published by Rajkumar Kaushal on May 17th 2012 | Finance
Debt settlement has something to debt management for debtors. Debt consultants make the whole differ...
 
Making debt settlement easier with groups
Published by Rajkumar Kaushal on May 15th 2012 | Finance
Debt settlement forms and articles have become what a lot of people are making use of when it comes ...
 
Process of debt recovery in turkey within the Turkish law
Published by Rosa on November 26th 2011 | Finance
The process of debt recovery in turkey follows the Turkish Enforcement Law. Any legal entity in fore...
 
Setup your own backend debt settlement office
Published by John Taylor on December 26th 2011 | Finance
It’s best to pass on all your tax settlement issues to a competent tax settlement backend. These b...
 
Credit Counseling: Your first line of defense against crushing debt
Published by CVGiCanada on January 11th 2012 | Finance
Your Toronto credit counselor is someone you have to have a great deal of trust in. These profession...
 
Caravan Loans - Helps You to be in debt Caravan Loans
Published by Mark Fulton on February 3rd 2012 | Finance
Caravan Loan is extremely well-liked these days, insist in increasing and is basically liked car fi...
 
Overcome student debt at the earliest with professional assistance
Published by Peter Paul on December 22nd 2011 | Finance
Student debt can leave you devastated. It can hamper your entire professional and financial future i...
 
How to make use of debt settlement rating
Published by Rajkumar Kaushal on April 27th 2012 | Finance
In the beginning of debt settlement history, debt Settlement rated was unheard of until now. You mi...
 
Outsourcing debt settlement is the best solution
Published by John Taylor on December 26th 2011 | Finance
If you are in the business of marketing debt resolution services, you should consider outsourcing de...
 
How can I get Debt Reduction? How can a debt plan help me repay my debts?
Published by Deby Suportie on March 28th 2012 | Finance
Debt reduction is a program provided by debt companies so that those who are struggling with debts c...
 
Why hire a credit card debt management company?
Published by Yossi A on January 12th 2012 | Finance
As a matter of fact, it not only clears your already existing debt but also offer valuable technique...
 
I am in a debt management plan and have been made redundant – what can I do?
Published by James Falla on November 28th 2011 | Finance
With the possibility of wages being reduced and jobs being lost as a result of the government cuts, ...
 
Before you make proposal for debt settlement
Published by Rajkumar Kaushal on April 27th 2012 | Finance
How would the world look without making debt Settlement proposal? The answer is not far-fetched beca...
 
The right way of outsourcing debt settlement
Published by John Taylor on December 15th 2011 | Finance
Those that are marketing debt resolution services, after a period may find, that there are far too m...
 
Dumfries and Galloway debt figures reach record level
Published by Jack Gray on February 1st 2012 | Finance
A report by Citizens Advice Service was brought out a shocking number out of the people who are into...
 
Making debt settlement customized
Published by Rajkumar Kaushal on April 27th 2012 | Finance
Debt Settlement personal is important because they are options that would make your debt reduced dra...
 
Articles that make firms better in debt settlement
Published by Rajkumar Kaushal on May 26th 2012 | Finance
Debt articles and firms that care of debtors is one of those debt settlement we see when it comes to...
 
Counseling debtors during debt settlement
Published by Rajkumar Kaushal on May 19th 2012 | Finance
When you are about planning for Counseling in debt settlement and debt activities, it is important t...
 
Stay away from the traps of the student debt
Published by Peter Paul on December 15th 2011 | Finance
The student debt can be avoided at all costs. Here are some tips to stay away from the traps of the ...
 
How to live free of debt in California
Published by Rajkumar Kaushal on May 15th 2012 | Finance
You must have seen debt settlement tips today or days back online. This is debt information for the ...