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Debt Help Companies

Some people choose to negotiate with their creditors directly, but others prefer to choose a professional debt management company. While most debt management companies do charge a fee, in most cases, a good debt management company will be able to reduce your actual debt amount, so they'll save you money. They do this by persuading your creditors to reduce the debt, the interest or other charges, so it makes sound financial sense.

What kind of help can I expect from a debt management company?

A good debt management company will usually offer you the following:

Getting debt collectors off your back

Many unscrupulous debt collection agencies will put great and unfair pressure on you and abuse your rights. A good debt management company will have the experience and knowledge to persuade them to leave you alone. Once you're on a debt management plan you shouldn't have any more problems with them.

Working out a budget

You'll need to go through your income and expenditure. Your debt advisor should be able to guide you through nationally recognised amounts for essentials like transport, heating, clothing etc and from that what you can actually afford to pay

Negotiating directly with your creditors

Some companies will leave this to you to do yourself. The better companies will actually do the negotiating for you. With years of experience and expertise on their side this is usually much more successful.

Conducting all correspondence for you

Your debt management company should handle all correspondence with your creditors, by phone, letter and email, for you.

Making your payments for you

You will normally just have to pay one single monthly amount to your debt management company and they should distribute this in the agreed proportions to your creditors.

Providing help and advice

A good debt management company will also be able to give you advice on how to reduce your outgoings and save money in many ways, and be available for any of your questions. You would normally have a dedicated debt advisor dealing with a small number of cases. Many of the less good companies employ call-centre staff, often from foreign call-centres who are untrained and you won't have a dedicated advisor dealing with your case.

Kensington Finance

At Kensington Finance, we have helped over 25,000 UK families become debt-free. We allocate you a dedicated debt advisor who will only ever have a small case load and be able to answer your calls. We even work evenings and weekends if you need to call us. Call us now on 0800 096 4409 (no obligation) to find out what your options are.

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  • 06 Jan 10
    Debt management companies face improved regulation

    The UK government is launching a consultation into the procedures of debt management companies. Kensington Financial Management Consultants welcome further industry regulation and are members of the Debt Resolution Forum – an organisation designed to increase standards within the industry.
  • 17 Dec 09
    Money problems top 2009 concerns

    A recent survey conducted by Samaritans indicates that 48% of the UK population has worried about their money problems and debt in 2009.