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Debt charity v Fee charger

Saturday, 7th January 2012

118-confused-manWhich one to use for a debt management plan – a Debt Charity or Fee Charger ?

We highlight what we think are the pros and cons of each.


Debt charity

FOR - The advice you are given by a debt charity will be impartial and all of your monthly payment goes towards your creditors/lenders and in return they receive a commission or donation. Because you are actually paying that little bit more each month compared to a commercial fee charging firm you will reduce the time period of your repayment plan. For many consumers this works well.

AGAINST - Some debt charities are being faced with a huge demand for their services and can take longer than a fee charging firm to even set up a telephone appointment to go through your finances. If you don't mind waiting then you won't pay fees!

Take me to the debt charities and helpful organisations.


Fee charger

FOR - Fee charging firms will generally deal with your enquiry on the same day of contact or a within a few days.

AGAINST- Fee charging firms are commercial companies and they will charge you every time they distribute a payment to your creditors; this is usually around 15% to 18% of your monthly payment. So if you pay for example, £200 per month to the commercial debt management company, they will take, around, £35.00 for professional fees so your creditors will only receive only £165.00 instead of the £200.

AGAINST -There are some firms that will ask for the first three months payment from you in advance BEFORE they actually start work on your behalf. Stay away from these firms as there are others that will do the same job with just one month fee and will normally start work before you have actually paid anything.


Take me to the the list of free debt advice agencies including the debt charities




For no nonsense advice just submit the short form and Mike or one of his team will get back to you.

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£0 - £25

Affordable payments

£0 - £25



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