Okay, so first off, what is debt management? The management of debt in the more formal sense of the word comes in the form of what is known as a DMP (debt management plan).
This is basically an informal agreement between the person in debt and the different people they owe money to, to pay the debt off in full, but at a more “Manageable” rate than what is already being done. The result is that in the short term, the person in debt will have more spare cash left over each month, which should have the knock on effect that their life and financial standing, is made that much more manageable, and easier to live with.
A debt management service will work with you, so that you can repay your debts, in a more managed fashion, so that you dont get unwanted hassle off creditors.
Generally if your troubles are temporary and your situation is likely to improve within the next 12 months then a debt management plan is a good choice for you to take, but these are perhaps best avoided if your situation is going to take longer than two months to improve on, also to be taken into account are the fees that the financial agencies charge as mentioned above.
Debt advice companies typically charge around 15% for their services, and there will usually also be costs for administration. Whether or not this is the correct option for you is down to whether or not you think you can make the repayments without assistance and whether or not you see the service itself as being worthwhile. Do note however that with a Debt Management plan, this will show up on your credit rating, and may affect your ability to gain some credit in the future, even if you arrange a debt repayment programme.