Best Debt Management Companies

Feeling stuck in debt can be scary, but don’t worry. We have created a simple guide to help you understand the best options for managing your debt in 2023.

Each month, more than 170,000 people visit our website seeking advice on debt problems, so you’re not alone.

In this easy-to-understand guide, we’ll explain:

•  The top 5 debt management companies in the UK
•  The things to consider when choosing a debt management company
•  The good points about having a Debt Management Plan
•  How you might be able to write off some of your debt

Paying off debt can make you feel worried, and the choices can seem hard to understand. But please remember, you are not on your own. We’re here to help you find the best way to sort out your debt.

Best Debt Management Companies 

There are many organisations that offer debt management plans, debt advice, and other debt solutions. Some organisations will provide such services for free, whilst others will charge fees.

Free Debt Management Services

The following organisations provide free debt management plans:

1. StepChange
2. National Debt Line
3. Payplan

In addition to the above, the following organisations provide free debt advice:

1. Debt Advice Foundation
2. Citizens Advice
3. Community Money Advice
4. Money Plus Advice
5. Money Wellness

Top 5 Debt Management Companies

The table below highlights some of the most popular debt management companies in the UK. It also includes each company’s area of specialisation, their TrustPilot review, and a contact number. Each of these companies may charge fees.

What to Look at While Selecting a Debt Management Company?

It’s important to do your due diligence when selecting debt management companies or debt management plans and are confident that the company you opt for is:

1. Authorised by the FCA: Any company that is legally providing debt management services should be authorised by the FCA. This acts as a level of protection for the customer.
2. A member of a trade association with a code of practice: Some debt management companies belong to a trade association with a strict code of practice. This can give the customer extra peace of mind.
3. Receiving good customer reviews: Before committing to a particular debt management company, it’s always a good idea to have a thorough look at their customer reviews on third-party sites, such a TrustPilot.
4. Charging appropriate costs: It is always important to shop around and compare fees before deciding on a debt management company. It’s also worth remembering that free debt advice services from non-profit organisations are available in the UK.
5. Able to provide the services that you need: When committing to a particular debt solution, it is necessary that you are confident of your ability to fulfil the demands. If a debt management company attempts to convince you to sign up to a service that isn’t appropriate for your needs, you should look elsewhere.

Is a Debt Management Plan worth it?

Entering into a Debt Management Plan may be appropriate if:

• You are able to afford monthly repayments on priority debts but are struggling to keep up with non-priority debts, such as credit cards.
• You would benefit from a professional dealing with your creditors on your behalf.
• Making one consistent monthly payment will help you to budget more effectively.

However, a Debt Management Plan isn’t appropriate for everyone. Before entering into a DMP, it is important to be aware of the potential pitfalls, such as:

• Repaying your debts will likely take longer because you are paying less towards them each month.
• Your creditors aren’t obliged to freeze any interest on your debts.
• Your creditors can refuse to cooperate with you.
• Your DMP provider could charge you fees.
• Having a debt management plan (DMP) on your credit file may make it harder to get credit in the future.