Why pay fees for a debt management plan? See how much we could save you
A fee charging debt management company is a firm that will charge you for debt advice and debt service. They usually take the first two months’ payments into your plan as upfront costs followed by 15% of your monthly payment plus VAT. The New Protocol launched in February 2013 will mean that the up front fees will be taken over six months. See Debt Management Protocol
There are some good fee charging firms operating in the debt industry and if you are happy with your firm then fine. However there are some shockers out there and we have the following guide to help you spot them, see our 7 point guide to spotting a dodgy debt advice website!
If you are thinking of starting a debt management plan or wish to transfer to a 'non' fee debt management plan and not pay fees then see how much we can save you by using the slide bars on our unique fee saving calculator above.
Page last updated Sunday, 08 January 2012
Up to now Friendly Societies did not pay interest on savings, instead paying a dividend and they had to have a "common bond" which restricted its membership to certain groups.
However new rules mean that from the 8th January, such financial co-operatives can, for the first time, pay interest on savings and provide their services to a wider range of groups. The changes will enable them to compete more effectively with banks and more consumers will be able to take advantage of the style of banking Credit Unions offer.
The move comes about as a result of the commitment to promote this area of financial service and the number of Credit Unions, now running at a little over 400 with around 1 million members, is expected to increase.
Read more on How credit unions work and their key points.