Chances of finding a free debt management plan (DMP) are slim.
There are debt management companies out there that may advertise free services, but some of these may not be being up front with you, so you do need to ask the right questions.
In many cases when a debt counseling company advertises free services it only means there are no upfront costs involved.
They will take their payments out as a commission which will be included within your monthly payments.
So you may not be overtly aware of the charges you pay, because they are not separate, but they are still there.
Debt companies offer very specialist professional services and have to employ skilled people in order to do this.
For them to remain viable and stay in business they must charge something for that service.
For a good company providing an excellent service, this can still be very good value for money, but it does mean that finding a free debt management plan is easier said than done.
Contacting a good debt advice or counseling company is top priority when you are wondering whether a DMP may be the right option for you.
Just be a little cautious about any advertising that offers a free debt management plan and make sure you ask about their fees and how the plan and the company are funded.
Try to find well known and reputable organizations that have a good track record of helping people successfully.
Discuss how they get paid and what you can expect for your money before you agree to do business with them.
Once you have a trustworthy organization in place they can assess your situation and advise you on whether a debt management plan will be the best way to get you free from your debts again.
When a plan is set up, you will make a monthly payment to the debt company who will split that payment up among your creditors.
The creditors involved might be credit cards, medical bills, payday loans, etc.
In many instances the debt help company will be able to get the creditors to lower interest rates and to waive certain fees, which is what brings down the cost of your monthly payments.
Remember that the chances of finding a truly free debt management plan are close to impossible, but do not be put off by that, because they do not need to be free to be hugely beneficial.
That does not mean they cannot help you with your financial bind.
Just because you cannot find a free debt management plan should not dissuade you from using a good debt help organisation.
You do have to stay on top of things when you are on a DMP.
Make sure your debt advisor or representative is paying your creditors every month.
You can do this by checking your bills every month.
You could contact your creditors to make sure they accepted the debt plan, though this ought not to be necessary.
Do this before you start sending money to the debt counseling company.
It is important that you make your payments on time every month.
Do not let yourself fall behind on these new arrangements.
The chances of your creditors letting you start fresh again are very slim.
It is probably best to stay away from any debt help companies that you find are advertising they have a free debt management plan and you find out that this is untrue.
It costs money to put together a debt plan so doing a free debt management plan would cost them money.
Just look for recommended companies and apply to a few before committing yourself to anything.