A debt management company, is a third party intermediary that can help you to negotiate debt management plans with your creditors. In truth it’s quite possible to arrange a plan with your creditors yourself, but it is a lot of work and is often much easier to have experts do this for you. This is where the debt management company comes in, as they can explain everything you need to know about what is debt management.
Debt management companies need to be fully licensed by the relevant authorities. They will need to hold a valid consumer credit licence from the Office of Fair Trading (OFT). They will also need to have a data protection license from the Information Commissioners Office (ICO).
A debt management company will normally have a vast wealth of experience in dealing with debts and arranging debt management plans. They will have seen many different debt situations with their clients and they will be experienced enough to help the client and company work out together what debt solution is going to best for the client. The client’s needs are obviously at the centre of the discussion, and these needs will vary enormously depending on the personal situation.
There are four main debt solutions available to clients, although there are some other ways to deal with debts not always included in these, such as debt settlement making full and final settlement offers, refinancing the debt, or checking the validity or enforceability of the debts. For instance if no payment has been made on a debt for 6 years or more it is likely that the debt is statute barred and the client no longer owes that debt. A good debt management firm will check into these things for their clients. The four main debt solutions are:
- Debt Management
- IVA (Individual voluntary arrangement)
- DRO (debt relief order)
- Bankruptcy
The truth is that few companies are able to offer debt relief orders and bankruptcy. However to be completely compliant all options are considered. If a debt relief order or bankruptcy are likely to be the best option for the client after thoroughly going through the financial situation, then a referral to an organisation that can help is made.
If an IVA or a debt management plan is clearly in the client’s best interest then the work is done to make that happen. With our debt management plans we do every single thing possible to help our clients. Our clients never need to call their creditors or speak to them if they don’t wish to. We get phone calls all the time from clients of other debt management companies who have been asked to call around to get some information. We believe that if you are paying a firm to do a job for you, then they should take care of the entire process for you. Ultimately, that is what you are paying for.