Debt management companies can be sorted into two piles straight away; charitable, public sector types and private sector, fee-paying types. On the one hand, the free, charitable types may seem more appealing. After all, you don’t have to pay them to help you. You are given an appointment with someone, be it at the the Citizens Advice Bureau, National Debtline or the Consumer Credit Counselling Service, who can go through your situation.

However, as debt has become such a popular topic these days, there is no guarantee that you’ll be seen quickly and as we know, the sooner you tackle your debt problem, the better. In fact, these debt advice agencies are actually facing major backlogs of individuals looking for a solution to their debt problem. Once the advice stage is finished, that tends to be the end of their service too.

On the other hand, private debt management companies, like Debtsolver, will be able to see you more quickly, help you to find the right solution to your debt problem and then administer the debt management process and payments for you too. This is something which the public sector advice companies.

It’s also worth remembering that the advice stage of the process will tend to be free. As ever, you’re encouraged to shop around for the best deal. When you find a debt management company that suits you, they’ll administer your repayments on your behalf. You make a payment to them and they distribute it amongst your creditors. It’s this service that you’ll be charged for but the payment will be included with your debt repayment.

Some important points to remember.You should be focussing on getting out of debt as quickly as possible. This will save you money in interest. So, always try and make the biggest repayment and creditor contribution that you can realistically afford. It’s important to be realistic though; if your repayments aren’t reasonable, you’ll just get yourself into deeper debt trouble.

Pay close attention to the amount that you’re being charged. Also, be sure to read the small print carefully for any hidden administrative costs. Never pay for advice up front either; hear what everyone has to say first.

Make sure that the extent of the service is made clear to you from the outset. You want to know exactly what you’re getting for your money. Most importantly, find out the extent of their administrative responsibilities and whether or not you will have the support of a dedicated debt management advisor throughout the entire process.