Can you become debt free for free?

In an attempt to deal with your money difficulties, you often seek help from Debt Management companies.

Many of these companies advertise their services or products to the consumer for free while some may charge fees. These companies provide you with their services according to the fees they charge.

In many cases, banks and Credit Card companies fund the "free" Debt Management services. Thus, these services are typically not absolutely free at all. Some Debt Management companies may not charge anything to the debtors initially but they can devise a revenue sharing model with the creditors where they can both exist together and can benefit each other.

However, debtors can enjoy several advantages that these firms bring. These companies can agree with your creditors to freeze the interest. They can give you free advices but you will have to pay if you go for a DMP; they could offer you an Individual Voluntary Arrangement (IVA) and when you complete your IVA, the creditors will pay the fees.

There are also several "free help" organization that will give you a DIY Debt Management Plan but they won’t provide you with any help in dealing with your creditors.

Be careful when visit a "free help" organization, to do not pay hundreds of pounds ultimately.

It’s a truth that if you want to get out of your debt, you will have to pay some charges and it’s not absolutely free, as it may appear at the first time. But, in most of the cases, these debt advisors prove very helpful in managing your debt difficulties.

Before applying for any debt solution remember to compare at least two or three different organizations. Evaluate your personal circumstances with extra care and make sure you understand the financial product and all the cost involved. Is a good idea comparing solution from non-profit charities and commercial Debt Management firm.

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