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How to Get the Best Debt Management Companies in the UK

best debt management company UK

Suppose you have high debts to repay and struggle to clear them off. In that case, many entities offer various debt solutions and techniques to help you get rid of your debts and guide you to bring your finances on track. The best source to start with is the best debt management company UK or debt charities where you can acquire free debt services and debt help.

You can find tons of debt management companies or service providers in the UK. You can successfully employ a suitable debt solution only if you work with the UK’s reliable and best debt management companies in UK. Finding the right debt management service provider is essential for efficient debt management. Thus, there are a few instances that you should consider while searching for them. 

What is a debt management company Work In UK

The majority of debt management companies work the same way. They help you negotiate with the lenders/creditors to lower the debt or reduce the interest rates while drafting a debt repayment plan that you can afford to pay every month until the debt is paid. 

Suppose your financial and debt scenario is terrible. You cannot effectively pay off the money owed to the lenders within a specific timeframe. If so, it is time for you to seek proper debt solutions by working with a reliable and reputed debt management company. Besides giving you reasonable debt management plans, they also offer you essential debt advice and money advice to gain control of your financial situation. 

Debt management companies provide professional debt advisors and debt counselors to help you with debt management. While looking at the best debt management companies in the UK, the foremost aspect that you should confirm is if they are authorized and are run by the FCA (Financial Conduct Authority) of the UK Government. Because you see, as the need for debt solutions is rising, many fraudulent debt service providers and scammers have taken root in society. 

Therefore, to help you find the best debt management company in the UK, here are a few noteworthy considerations that you must take note of carefully. 

Things to consider to get the best debt management companies in the UK.

Even after you have efficiently done your research on the available debt management companies near you in the UK, while you get in touch with them, you should make sure to clear all your confusion regarding the debt management company and the debt services they offer their clients. 

Types of debt services offered by the debt management company. 

A debt management company offers a variety of government-approved debt solutions to its clients. So, the first basis for finding your reliable debt management Plan company is the availability of services to you. It is more than better if they offer re-establishment services, money advice, financial contingency planning, management plans, budgeting tools, etc., besides only offering debt solutions to handle debt. 

Popular debt solutions that the majority of the debt management companies manchester offers to their clients are the debt management plan company DMP,DRO, Individual Voluntary Arrangement (IVA), Bankruptcy, to name a few. Therefore, go with the company that meets your debt management service demand and seems the best for your financial and debt situation.  

Confirm if the debt management company is FCA approved.

Debt management companies claiming to offer debt solutions to the UK residents must have proper authorization from the Financial Conduct Authority (FCA) of the UK Government. Since they are offering government-approved debt help solutions, it is a different matter whether they charge an additional fee from the clients or not. This approval shows that they are licensed to practice and offer such debt services to their clients. 

Now, a best debt management company UK being FCA authorized means that they meed the required standard protocols to offer such debt services to the UK residents. It also indicates that if you are not satisfied with the debt services provided to you for debt management, you can officially file a complaint against them to the respective Financial Ombudsman Service if the issue is not resolved within a specified duration. 

The Financial Conduct Authority (FCA) website has every information on whether a debt management company is FCA authorized or not. If you do not get adequate information from the service provider, check here. 

Confirm if the best debt management company UK is a part of the DMP protocol scheme. 

Since you choose to find a reliable debt management company, you will most likely decide to apply for a  DMP as a debt solution to tackle your debts. It is necessary to confirm if the DMP service provider follows the Debt Management Plan protocol or not. The UK Government introduced the DMP protocol scheme under the Insolvency Service. Entering this DMP protocol is voluntary.  

Therefore, a trustworthy debt management companies in manchester must be a part of the DMP protocol, ensuring that they commit to its standards and FCA rules. That will give you assurance about the quality of debt service you will receive. 

Suppose the debt management company offers Individual Voluntary Arrangement (IVA) as a part of their several debt solution and services. In that case, they must also follow the standard IVA protocol. The insolvency practitioners they appoint must also be certified and regulated by the professional body, the Insolvency Practitioners Association (IPA). 

Either way, find the one debt management company that correctly follows the essential standard protocols.  

Check if the best debt management company UK charges additional fees for acquiring the debt services.

You would not like to pay additional upfront fees for acquiring the debt services from the debt management company, right! Suppose you cannot afford to pay the extra service fee to the company. In that case, you can simply find a debt management company that offers free services to its clients. Since you wish to pay off your debts with their help, bearing the company fees is also not a good option. Thankfully, some debt management companies in the UK charge fees, and some do not charge any fees. 

Best debt management company UK charges

Debt management companies that charge additional service fees include the expense as a percentage (10 – 15%) of the monthly debt repayment. While you do not pay the extra out of your pocket, deducting that amount from the regular debt payment results in less money to the creditors. This will possibly extend the debt repayment term. 

Debt management companies that do not charge any upfront fees are better in the sense that whatever debt payment you make every month goes to the creditors in full without any deduction in the amount. Since the creditors then receive the total amount as repaid by you, you can pay off your debts on time or even early if possible. The best debt management company UK here does not face any losses per se as they are partnered with some of the major lenders in the UK. 

Any fees and costs that will incur must be adequately discussed with the service provider before you apply for a particular debt measure with them. Having all the aspects cleared will enable quality cooperation from all the parties involved leading to a successful debt repayment process. And no matter how good is the service of the debt management company or how beneficial a specific debt solution is to you, if it exceeds your budget, do not go for it. As you are already debt-ridden, further money troubles will only increase your financial concerns. 

Go through the customer reviews and reputation plus experience of the debt management company. 

Looking at the customer reviews of the debt management company does help a lot. You can find a lot of information that the company chooses to hide from its clients. You might get an insight into how the company actually manages the debt solutions while working with clients. If possible, talking with some of the previous clients works a lot to understand the workings and service quality of the debt management debt management companies in manchester

A debt management company with a high reputation and years of experience is bound to garner a lot of loyal customers. They get better expertise in providing the best-quality debt management services to debt-ridden individuals. If a company has been offering debt services for about 25 years, you know that company is trustworthy for its service.   

Top 10 debt management companies UK

Since you are on the search for the best debt management company in UK, here is a list of them. Along with the considerations stated above, the following list of debt management companies will make your choice easier and effortless. We have added a small review of them. 

  1. StepChange 

StepChange is actually a debt charity organization offering various debt solutions and other debt-related services like credit counseling, money advice, etc., to UK residents dealing with debts. As a debt management company that offers free debt services, they are voluntarily funded by the major credit industry in the UK for their debt services. A unique benefit of StepChange is that it offers a Breathing Space Scheme to eligible clients. StepChange is a licensed limited company and authorized by FCA. 

StepChange debt charity’s debt solutions:

  • Debt Management Plan (DMP)
  • Debt Relief Order (DRO)
  • Debt Arrangement Scheme (DAS)
  • Individual Voluntary Arrangement (IVA)
  • Minimal Asset Process (MAP)
  • Bankruptcy (Advice and sequestration)
  • Equity release
  • Trust Deed
  • Mortgage advice

Contact: 

  1. National Debtline

National Debtline offers free debt advice to people wanting to tackle their debts majorly by telephonic conversation. The debt advisor assesses your debt situation and suggests advice for debt management. 

It is a limited company licensed and regulated by the FCA. It provides quality and helpful fact sheets on various debts and debt solutions.   

Contact:

  1. Payplan 

Payplan is a debt management company offering free debt services to UK Citizens. Like StepChange debt charity, Payplan is also funded by the UK’s credit industry to provide quality debt services to help people with debt issues. Besides offering multiple debt solutions, they provide quality debt information on finances and debts like credit scores, financial wellbeing, default notices, bailiffs, money advice, etc. It is authorized and run by the Financial Conduct Authority (FCA) in the UK. Its insolvency practitioner is also licensed by the IPA (Insolvency Practitioners Association) UK. 

  1. Debt Advice Foundation 

Debt Advice Foundation is a registered debt and education charity. You can avail of free debt services here. It is a registered company authorized and regulated by the FCA in the UK. Besides offering quality debt solutions to people in need of debt help, they also provide other debt-related tools like credit rating checks, budget planners, money management guides, and personal debt analyzers, to name a few. 

  • Individual Voluntary Arrangement (IVA)
  • Bankruptcy 
  • Debt Management 
  • Debt Consolidation
  • Debt Relief Order (DRO)
  1. Citizens Advice 

The National Association of Citizens Advice Bureaux in the UK operates under the name of Citizens Advice. It is a registered limited company. As the name suggests, they offer national debt charity advice via different modes regarding debt & money, housing benefits, creditors, budgeting, mortgage issues, consumers, work, law & courts, etc. 

Citizens Advice offers debt advice on multiple debt solutions, namely Bankruptcy, Debt Management Plans (DMPs), Debt Relief Orders (DROs), Administration Orders, and Individual Voluntary Arrangements (IVAs), and Debt remedy tools. 

Contact: 

  1. Financial Wellness Group

Financial Wellness Group is a registered limited company in Wales and England and one of the UK’s largest debt management service providers. It represents the popular debt counseling service provider, Gregory Pennington Limited. They are authorized and regulated by the FCA UK. They provide certified insolvency practitioners to IVA holders held by the IPA UK. 

  1. ACME Credit consultants Ltd

ACME Credit Consultants Ltd is a flourishing debt management company in the UK with established professional debt and financial advisors. They offer free debt advice, and free appointments, to people in need of debt help. While they are fully regulated by the Financial Conduct Authority (FCA) in the UK, they also strictly adhere to the Data Protection Act to safeguard the clients’ interests. It also indicates fair practices while offering quality debt services to the masses. However, note that they charge a service fee of 20% of the total debt amount.  

  1. National Debt Help

National Debt Help is registered as a debt management company in England under the company name of NDH FINANCIAL LTD. While FCA does not regulate national Debt Help, they are instead authorized under the Insolvency Service Directory of the UK. Their appointed insolvency practitioner is also listed in the Insolvency Practitioner Directory of the UK. They engage in insolvency practices to offer multiple debt solutions to individuals with overloaded debt burdens with no upfront fees. 

Besides tons of debt solutions, National Debt Help also provides various services like Breathing Space Scheme, Remortgaging, Selling assets, temporary repayment plan, government debt advice, property surrender, and many more. 

Contact:

  1. Carrington Dean Group

As a debt service company, Carrington Dean Group claims to write off about 70% of the unsecured debts of a client. They are registered in Scotland under Carrington Dean Group Limited and are licensed plus regulated by the FCA UK. 

They do not administer services related to debt management products like the (DMP). 

  1. Independent Debt Management 

Independent Debt Management is registered in Northern Ireland. It emphasizes providing a wide range of Debt Advisory Services to individuals with debt help needs. Their Professionally Qualified Independent Financial Advisor will help you seek your requirements. They charge 25% of the total amount as a service fee from their clients.  

Independent Debt Management debt services: 

  • Personal finance
  • Equity release
  • Debt advice
  • Business debt management 

Contact: 

  • Phone number- 028 9145 0000
  • Email- info@independentdm.co.uk 
  • Website-  http://independentdm.co.uk 

In the UK, there are tons of debt management companies promising to offer debt solutions and debt services to address the debt-woes of the UK citizens. While most of them provide the exact debt solutions, the main difference is whether they charge upfront fees or not. 

Finding the best debt management company in the UK is a tricky task. We hope this guide will help you find the right choice. 

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