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The Office of Fair Trading have unveiled plans to make the regulation of debt management companies tighter, ensuring that cash-strapped customers who are looking for support in their time of financial difficulty will receive the best levels of service possible.

At the moment, the debt management sector is worth £250 million a year to the businesses involved and this, when combined with the alleged malpractice in the industry, has resulted in the regulator cracking down on the businesses that aren’t doing enough to help their customers. Out of the 142 businesses that currently have a credit licence, enabling them to offer help and support to the financially vulnerable, 129 are being warned that significant reforms to their practices need to be made – and soon.

Some of the changes which are outlined include better transparency on how much a consumer would pay for the help that they need to get into the black. Discrepancies in advertising have meant in the past that a service promoted as free could actually involve fees. Now, IVAs and negotiations with creditors arranged for a debtor will be tighter regulated, and there will be more detailed scrutiny of the advice which is being given.

Looking around for testimonials of particular debt management services is important, and the experiences of other consumers bring a valuable insight into the overall opinion of a solution for managing repayments. Many companies do charge an administration fee on top of each contribution you make to wipe off your debt, so it can be a matter of comparing and contrasting the cost of each if you feel this is the option for you.

You should also always look at the plan that a debt management company will draw up for you. This is because of how you need to ensure that the new reallocation of your finances will be enough for you and your family to live on.

Another thing that you should double-check is whether or not your debt management provider is a charity or a business. One representative from the Consumer Credit Counselling Service said: "It is so important that those who are struggling with debt are offered services that are clear and transparent and advice that is independent and of the highest standards.”

Generally, the advice from experts is to look around. Joanna Elson, the CEO of a charity offering money advice, said: “Many consumers pay for these services simply because they are unaware of the free alternatives, or, indeed, did not understand that the provider they signed up with was a fee charger. We believe that all licensed debt management companies should be obliged to inform customers of free, independent alternatives."

It can be difficult to receive the help you need, and you want to go for a strong debt management solution. Remember: comparing the options available to you is important, as there are no guarantees that managing your repayments in this way will resolve your debts.