Money Worries - Should I Avoid?

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fatkid_lovescake
fatkid_lovescake Posts: 55 Forumite
in Debt-free wannabe
Dear friends,

I recently applied for a consolidation loan and was turned down - well that's what I was told, I applied with one telephone advisor at the above name company and he said I had been declined but then put me through to a colleague who said if I pay them a couple of hundred pounds per month they will charge 15% and pass the rest on to the numerous credit card and loan companies and ask them to freeze or reduce the interest, on my behalf that is, on the basis that the consumer credit act states the customer shouldn't pay back more than they can afford per month.

My question is - should I go ahead with it or carry on making just above the minimum payments and see my balances hardly reduce?

Does it sound genuine or should I avoid them?
Has anyone else heard of them? They can be googled and have their own site etc but I'm just a wee bit confused.

Many thanks in advance....
Playing with my money is like playing with my emotions!:cool:
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Comments

  • Blackruby
    Blackruby Posts: 833 Forumite
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    You shouldn't pay anyone to set up a debt managment plan for you. 10past6 has a link with a lot of free companies in it.
    Not an expert, but I try and contribute and I'll always listen. Middle child of middle child parents. I drink way too much coffee.

    Debt Free Date: March 2013
  • McKneff
    McKneff Posts: 38,825 Forumite
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    I have heard of this sort of business before, no matter who applies for the loan, they will get refused and passed on to an associate company who charge more. They dont deserve your custom for thinking you are stupid enough not to realise what they are doing. No offence intended. i would tell them to go and take a running jump.
    make the most of it, we are only here for the weekend.
    and we will never, ever return.
  • MyLastFiver
    MyLastFiver Posts: 853 Forumite
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    Avoid.

    What they have offered is to administer a Debt Management Plan on your behalf, in return for a fee of a couple of hundred pounds per month. :rotfl::rotfl::rotfl:

    Payplan and CCCS both offer the same service for free. Check out their websites.
    My Debt Free Diary I owe:
    July 16 £19700 Nov 16 £18002
    Aug 16 £19519 Dec 16 £17708
    Sep 16 £18780 Jan 17 £17082
    Oct 16 £17873
  • fatkid_lovescake
    fatkid_lovescake Posts: 55 Forumite
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    I thought so, many thanks to you all for this.

    Take care
    Playing with my money is like playing with my emotions!:cool:
  • chevalier
    chevalier Posts: 7,937 Forumite
    First Anniversary Combo Breaker
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    You can also access the wealth of knowledge on here by putting up your Statement of Affairs on here (see link at top of the page), and maybe we can offer options for trimming your outgoings, or uping your income.

    Also have a look at the moneysaving old style forum on this site, to see loads of ways of saving money

    good luck
    chev
    ps to answer your previous question, yes avoid like the plague!
    I want a job that is less than an hour driving away from my house! Are you listening universe?
  • RAS
    RAS Posts: 32,660 Forumite
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    Hi

    if you want to do a debt management plan one of the debt charities listed here will help you http://www.moneysavingexpert.com/loans/debt-help-plan#help
    The person who has not made a mistake, has made nothing
  • depressed_but_determined
    depressed_but_determined Posts: 128 Forumite
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    arghh run away!

    I paid them one payment before I realised that none of my initial payment went towards any of my debt and only to them as a 'set up fee'.

    I came on here and got lots of advice so I cancelled the plan within the 14 days cooling off period. That was January 12th and I have been unable to reach them to get my fee back by telephone, fax or letter. SCAM merchants!

    I defaulted on all my credit for the first time because of them. I am now with CCCS and all the money is going towards my debts.

    Don't make the same mistake I did.

    xxxx
    LBM: 09/12/2008
    [strike]£36000[/strike] £0 on 4 cards and a personal loan. Debt Remedy. Signed with CCCS on 14/01/2009 started Feb 2009. Finished March 2016

    Lessons learned and facing the struggle have made my life better than I ever thought it could be. Thank you Stepchange and DFW forum :beer:
  • fatkid_lovescake
    fatkid_lovescake Posts: 55 Forumite
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    Thanks for your advice guys, I shall take a look at the cccj firm and also the links on here and the debt charities.

    All the best
    Playing with my money is like playing with my emotions!:cool:
  • busybees2
    busybees2 Posts: 3 Newbie
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    I am so glad I have joined this forum!! I am having significant debt problems and signed up for a DMP with money worries! they were very believeable on the phone and actually thought someone was trying to help me but turns out they just want my money that I dont have!! I have now cancelled my debit card and standing order to money worries and have gone with cccs DMP.

    Any advice on how to get my first payment of £547 back from money worries? this is money I just cant afford to waste!

    Any idea how long cccs take to contact creditors? And get the DMP working.

    Sorry lots of questions

    Very stressed!!!!
  • Deep_In_Debt
    Deep_In_Debt Posts: 8,579 Forumite
    Photogenic First Post First Anniversary Mortgage-free Glee!
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    Not sure you will be able to get your money back unfortunately.

    My dmp with CCCS was up and running within a couple of months - I contacted them in December 2007 and made my first payment to the creditors in February 2008. They suggest that you make a token payment of £1.00 to all your creditors whilst it is being set up - I made a token payment in January.

    A lot of it depends on how quickly you get paperwork back to them also.
    Debt 30k in 2008.:eek::o Cleared all my debt in 2013 and loving being debt free :)
    Mortgage free since 2014 :)
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