Free Debt Management Plans (Introduction)
Bankruptcy or simply ignoring debts is not advised. Although it may time some time, with a DMP you will at least be repaying back what is owed and this way you will quickly ease those stress levels by stopping all of those nasty letters and phone calls. When it comes to free debt management plans, there are 2 main specialists. This includes PayPlan and StepChange that are each funded by donations from creditors in the industry (mostly banks). A traditional DMP company would typically take the first 2 payments alongside 17% of each monthly payment as a management fee. Most of the leading companies that I have studied that charge such fees do have a good track record and are highly praised from those that have used them.
Both PayPlan and StepChange themselves have also received high praise. Is free or paid the way to go though? You do wonder how much incentive a donation-funded provider would have to negotiate and manage a variety of creditors. On the flipside, you wonder why someone already struggling desperately should be paying for a service that they can get at no cost. For those that have already decided that free is the way to go then as noted PayPlan and StepChange are the free debt management plans advised by the charities. You can speak to either of these and will be at no obligation to use them. Do note that the StepChange contact number is free (even for mobile calls), whilst PayPlan is only free for landline calls.