Debt Management Plan compared
Your guide to all Debt Management
Debt Management are suitable no matter what your credit rating may be and can be applied for and approved instantly online.
The importance of looking around for a good debt management program
There is no questioning that when you have debt, you can find yourself at your most sensitive and vulnerable point. As a result, it can be important for you to scour thoroughly for the best debt management program for you, instead of taking the first incentive you see.
Through doing this, you can prevent yourself from getting involved with companies that actually make it harder for you to repay back the money you owe. One newspaper has revealed a company whose debt management plans actually continue to add interest, despite the main purpose of the plan being for debtors to find paying off the money they owe easier. Because of these plans, some people are beginning to find themselves perpetually in debt.
Numerous case studies have shown that if a person is in a debt management program that involves interest rates, the minimum repayments which are being made might not be enough to make an impact in the amount of debt which a person is trying to eliminate.
Many of the loan companies have retaliated and said that they are completely within the law to charge interest on these accounts, with some creditors adding that they are not sneaky in their actions – but ‘completely transparent and within the law’. Additionally, one financial institution was quick to emphasise that interest was only levied on a person’s account in extremely isolated instances. In addition to this, there are circumstances where any interest which is being applied to a debt management program can be frozen, like when a person receives a CCJ for example. These county court judgments are normally used when a court has recognised that a person is struggling to keep up with their repayments.
Despite this, many financial experts are now beginning to question whether or not the moves which are being made by these companies are actually ethical.
One expert said this: "In the end it's so dispiriting for the borrowers that they just give up. They think, 'What's the point?' We're not saying that creditors haven't got a legal right to charge this money, but you would question whether it's moral to keep charging in these circumstances."
All of this is only true for a restricted number of debt management schemes – and this is why looking around can be important. Asking the right questions can prevent you from paying any more money back than you would need to.