A debt management company will act as a 'middle man' between you and your creditors and can help you to consolidate all your unsecured debts into one affordable monthly payment.
Debt Management companies can help to negotiate repayment terms and try to reduce or freeze interest and charges on your accounts, to create a new lower monthly payment.
Debt Management gives you an opportunity to take stock of your financial position and to get you back on your feet.
However, in order for debt management to work all creditors must be in agreement with the proposed finance plan. Some debt management companies will charge very high monthly fees and creditors may continue to charge interest and charges, therefore your debt will increase. As a consequence, you will be paying off your debt for a much longer period of time.
When choosing a debt management company ensure they are regulated by the FSA and always get a second opinion if you are in doubt.
Debt Consolidation Explained contains general information only. We strongly advise you to seek qualified professional advice before taking any action.