Is A Free Debt Management Program Really Free?

Is there such a thing as a free debt management program?

Well, in truth, the answer is both 'yes' and 'no'. Sorry to be vague.

The yes part is simple. Most debt management programs are free to you the user. Let's be blunt, if your debts are that high, you can't really afford to be paying high fees, can you? If the service was not free, they would have no customers...

However, from the research I have done, there all seem to be fees, increased interest rates and charges attached later in the program. It might not be 100% clear upfront, but it seems to be the case later on.

Of course, these people need to eat too. People in finance have mortgages and bills to pay and kids to feed, just like everyone else. But, in my humble opinion, fee structures should out in the open and available to scrutiny and comparison. If I were you, that's what I'd try to find.

The terms and conditions of a free debt management program will be different from one firm to another, so it is important that you read the small print and ask any questions that you may have. In reality, it will probably be a unique contract to every company. Therefore, you can take nothing for granted.

Once you have entered into a debt management service or program, you are in. It would normally be a very bad idea to switch advisers mid way through their assisting you. This means that ideally, you need to do all of your homework upfront. Leaving it to chance or until later will just be too late.

So be careful. In latin there is a phrase, caveat emptor, which means 'let the buyer beware'. The word 'free' in free debt management program seems to be something of a nebulous term - go careful and read the small print. Twice!