A debt management company will not pay off your outstanding debt but it will negotiate with your creditors so as you can make more affordable payments.

What other services could these companies offer?
They could offer debt consolidation, debt counselling or debt management.

Do I have to pay?
Many companies will offer free debt advice, but take a small percentage of your monthly payments for debt management. Always make sure that a debt management plan is the best solution first by getting debt advice based on your individual financial situation. Check for fees which will be disclosed in your agreement and take the time to read all small print before signing on the dotted line.

Will debt management cover all of my outstanding debt?
Only if it is unsecured debt.

How can I be sure that my creditors are being paid on time?
Your creditors will continue to send you monthly statements showing how much your balance is reducing. You will also notice that all interest/charges will be frozen on your account.

Will I have to have a credit check?
No, debt management is not a loan, so you will not incur a credit check.

Do I need to cancel any direct debits?
Yes, you should cancel all direct debits relating to debt which is being paid by your debt management company or your creditors will be paid twice. However, you should continue direct debits running for your other household expenditure.