Advice on Debt Management Companies...

.Kencs

.Kencs

.Kencs

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Has anyone had any dealings with Debt Management Companies?
Lately I've found myself under a lot of pressure with creditors demanding money left right and centre and I need to get my life sorted, so I've been advised to speak to a Debt Management Company to try and consolidate all my debts and pay 1 lump sum each month to 1 place.

I have a visit tomorrow from 1 company I've been intouch with, and what do people advise or what company have people used in the past to help them out?

If your going to make stupid/childish comments, don't bother posting. It's a serious question where I'm asking for advice as I'm under a lot of pressure at the minute...

Thanks in advance...
 
The Consumer Credit Couselling Service (CCCS) is who I'm with. They're a charity, you pay no setting up fee's, you fill out a form online, they work out how much you can afford to pay, and they take into account things like money for car problems, money for lunches etc.

They send out intructions on what you would need to do like sending letters to your creditors etc and then you pay them the amount that you agree with them.

They then pay that to your creditors on a pro-rata basis.

I have had no problems with them at all.
 
burtieb1 said:
You'll should contact the cccs http://www.cccs.co.uk/ they will sort you out with no fee.

They helped me and the wife a few years back and were very helpful and did all the ground work for you, to repay what you can.
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Thank you mate. I'm having some serious sleepless nights and need to get things sorted. They are mainly my wife's debts but as im married, you have to share the problems :(

How long does CCCS take to sort out?

I've got an appointment with a company called Compass tomorrow. Anyone heard of them?
 
.Kencs said:
Thank you mate. I'm having some serious sleepless nights and need to get things sorted. They are mainly my wife's debts but as im married, you have to share the problems :(

How long does CCCS take to sort out?

I've got an appointment with a company called Compass tomorrow. Anyone heard of them?
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No mate not heard of compass have a chat with them and if they want fees tell them to do one. It will take a couple of months to get the cccs up and running but after that you pay by standing order and forget about it for a while.

The best thing to do is sit down and write to all the company's you owe money to and explain the situation and offer them a pound until the cccs gets moving.
 
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good advice above, don't get sucked in by companies that charge you a fee for sorting things out. A lot of places will help you for free.

The companies will mainly do things that you can sort out for yourself.
Sit and write down all your debts along with your incoming and outgoings.
Work out how much money you can use to start paying off the debts then proportion your disposable income to each company, priority goes to council taxes, sheriff officers, secured loans etc.

Write to each company and offer what you attributed earlier, don't be scared to even just offer £1 a week or something at least you are offering to pay.

The citizens advice bureau can offer good advice, also have a look at the office of fair trading guidelines for debt companies as some can take try to take advantage if they think they can. Don't be bullied into paying more than you have available.
 
As much as it sticks in my throat, MoneySavingExpert may help. I see Martin Lewis as an idiot who has convinced every chav/low-lifechancer that EVERYTHING has been mis-sold and to claim claim claim.

Glad to see you taking the responsibility and getting sorted.
 
Please bear in mind that if you setup an agreement through one of these companies (assuming they aren't just looking to sell you a loan) and you miss a repayment, all of your creditors can take you straight to court. Defaulting on the agreements (I can't remember what they are called atm) is a very dangerous game.

Can I make a out-there suggestion and say that you should visit the CAB? They have people who spend all day sorting out peoples money management issues. We used to refer tons of people for help.

It may also be worth putting all of your debts into a single spreadsheet so that you can sort out who are priorty (CT, RENT etc) and who aren't (Store Cards, Loans etc) that way you can make decent offers of payments to the priority ones and minimal payment terms to the non-priority ones.
 
Definately CAB before you do anything else - I wouldn't touch any debt management company that wasn't registered as a charity either, if they are in it for profit that profit will come from you.
 
Malakite said:
good advice above, don't get sucked in by companies that charge you a fee for sorting things out. A lot of places will help you for free.

The companies will mainly do things that you can sort out for yourself.
Sit and write down all your debts along with your incoming and outgoings.
Work out how much money you can use to start paying off the debts then proportion your disposable income to each company, priority goes to council taxes, sheriff officers, secured loans etc.

Write to each company and offer what you attributed earlier, don't be scared to even just offer £1 a week or something at least you are offering to pay.

The citizens advice bureau can offer good advice, also have a look at the office of fair trading guidelines for debt companies as some can take try to take advantage if they think they can. Don't be bullied into paying more than you have available.
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If you can prove that you can't make the re-payment terms, most card companies will freeze the interest on the card and allow you to make minimum payments. However they will expect an Income and Expenditure first.
 
I'd echo the advice above.

There are many companies out to make a buck off people with financial problems. Be careful and check exactly what it could cost you and what the penalties for getting into arrears before agreeing to Compass or any other for profit company. They have to make there money somewhere and it's far more likely to be from you than your creditors.

Good luck, you're on the path by trying to tackle the problems :)
 
Just a +1 for CCCS, I've been on a DMP with them now for about 4/5 years and they pretty much saved me from myself. I would recommend them above any 'business' that works off the back of people's debt.
 
another +1 for the CCCS took two months to set up from initial phone call and not had a problem with creditors since :)
 
As well as the advice above, would you be able to work something out with your bank? (This would be dependent really on the total sum of the debt).

A few years back I extended a loan I had with my bank to close of a couple of other credit a/c's that I had (to enable me to finalise & pay half on some debts when separating with my ex). It did make things a lot easier having just the monthly bill.

This might be of no use to you in your situation, but I wish you all the best in getting everything sorted out.
 
MrMoonX said:
CCCS or Payplan as they dont do it for profit
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Definitely contact one of these (I'm with PayPlan).
They're free, why pay the commercial companies.

They'll help you set-up a repayment schedule that you can afford and the creditors tend to agree to offers that CCCS or Payplan work out.

If you go this route, then the chances are your credit rating will take a BIG hammering (chances are your creditors will register defaults against you).

Beware of companies that say they can right off your debts because of dodgy credit agreements.
 
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