Free Debt Management Plan

A free debt management plan may be the solution to your need for structured financial assistance if you’ve been having difficulty keeping up minimum repayments on your unsecured debts. Whilst many consumers would like to have help from a debt management company, their financial struggles make it impossible to pay the high fees charged for many plans. With a free debt management plan, you may find the assistance you need at little or no cost to you.

A free debt management plan includes a customised programme to repay your personal debts within a specific time frame. Credit card bills, personal loans, overdrafts and catalogue debts may be covered under a free debt management plan. However, a plan will generally not cover secured debts, such as a mortgage or auto loan. Taxes, gas, electricity and other bills are also excluded from a typical financial management plan. Because of their importance, these bills must be paid directly by the consumer.

Free Debt Management Organisations

Overwhelming consumer debt is becoming an increasingly widespread problem. More individuals and families are finding themselves in dire straits financially due to extended periods of unemployment, illness or disability, divorce, high medical bills or overspending. Because these financial difficulties impact the economy and the public welfare in general, public organisations have been formed to offer free credit counseling or personal financial management services, which may include a free debt management plan.

Most companies that offer debt management assistance charge fees for their services, which include negotiating with creditors, developing a structured plan to repay your debts and distributing your modified repayments each month. Many of these programmes are credible, effective plans; however, they are beyond the financial reach of some consumers. A free debt management plan may be sponsored by a charitable organisation or a publicly funded agency that works on behalf of consumers to reduce or eliminate personal debt.

A free debt management plan is generally offered by a legitimate public agency or registered charity. Applicants may be required to meet certain financial qualifications in order to qualify for free services. Many commercial credit counseling agencies offer free consultations or online financial planning information at no charge. However, once you enter a repayment agreement with a commercial organisation, you will generally be required to pay an initial fee and monthly fees for its services.

A truly free plan includes the development of a personalised repayment plan, the submission of proposals to creditors and monthly distribution of repayments at no charge. These registered charities have helped many individuals and families free themselves from overwhelming debts and restore their financial health. Take the time to explore your options before you choose the plan that’s best suited to your needs. For individuals who do not have a steady source of income or who are crippled by debts, a bankruptcy or IVA may be more appropriate.

Avoiding Debt Management Scams

As the incidence of personal insolvency rises, many companies are offering credit counseling services using the lure of a free debt management plan. However, in many cases, these plans come with hidden fees and charges, sometimes totalling several thousand pounds. To avoid scams, limit your search to companies or charities that have a consumer credit licence from the Office of Fair Trading, or OFT. This licence is required by law for all companies or individuals that offer professional credit counselling services.

Unfortunately, unscrupulous providers are willing to prey on consumers who are desperate to find a solution to their credit problems. When creditors are phoning daily, sending threatening letters or taking legal action, anxiety and depression may drive consumers to seek help from fraudulent agencies. These agencies typically do not have the proper licence and do not disclose all of their fees clearly before convincing consumers to participate in their programmes. Many charge outrageously high fees, or take money for debts which are never repaid.

Take the time to investigate a company’s background before you sign an agreement with a provider. Look for a provider with a widely known reputation and a solid history of helping consumers resolve their financial difficulties. Never give your personal financial details to a company or pay a fee without being fully aware of the agency’s record and licensing status. Regardless of your circumstances, the cost of fraud is too high to risk your financial resources.

If you’ve avoided seeking help with overwhelming bills because you cannot afford the cost of commercial credit counselling, consider a free debt management plan. Assistance is available at no charge to individuals who qualify for these publicly funded programmes. Take the opportunity to compare the features and costs of several plans before you arrange a solution through an licensed agency. Financial health is within your grasp when you work with a reliable, credible provider.