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Are DMP offered by Payplan and CCCs etc really free?
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gingersilverfox
Posts: 36 Forumite
Here are my thoughts and I would welcome some debate on this matter.
Firstly
Setting up a DMP is expensive and involves a lot of paper work and admin. The financial institutions subsidise these companies to do this. Financial institutions do not do this to feel better about themselves there are sound business reason for this. Who really pays for this? Not the banks etc but us, the general public who endure more expensive credit agreements and threats of paying to use banks.
Secondly
Do the "free companies" negotiate debt forgiveness, fix the total amount payable or do nothing and leave the debtor a hefty lump sum to pay at the end of the DMP? This is important to know before entering into a DMP. The answer to this question will answer whether we can compare free companies with fee charging companies.
Debate point- should we blindly use free companies such as Pay Plan or CCCs for debt management OR should we shop about and compare how much a DMP costs over the duration of the plan.
"There's is no such thing as a free lunch"
Your thoughts
Firstly
Setting up a DMP is expensive and involves a lot of paper work and admin. The financial institutions subsidise these companies to do this. Financial institutions do not do this to feel better about themselves there are sound business reason for this. Who really pays for this? Not the banks etc but us, the general public who endure more expensive credit agreements and threats of paying to use banks.
Secondly
Do the "free companies" negotiate debt forgiveness, fix the total amount payable or do nothing and leave the debtor a hefty lump sum to pay at the end of the DMP? This is important to know before entering into a DMP. The answer to this question will answer whether we can compare free companies with fee charging companies.
Debate point- should we blindly use free companies such as Pay Plan or CCCs for debt management OR should we shop about and compare how much a DMP costs over the duration of the plan.
"There's is no such thing as a free lunch"
Your thoughts
GSF
"The best way to save money is not to lose it!"
"The best way to save money is not to lose it!"
0
Comments
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I don't think I have gone into this blindly and I'm pleased I used payplan.
When you need a builder/plumber etc for something around the house you can choose to go through the telephone book, or better still you can ask family friends for recommendations, and this tends to be the best way to go.
So on here, you only have to see how many people have recommended the 'free' companies to know that they seem to be doing something right0 -
CCCS and PAYPLAN are registered Debt Help Charities - their advice is free as they are funded, mainly, by the financial institutions.
Therefore any DMP, organised through either of these organisations, will not cost the debtor one extra penny.
Please do not confuse DMP's with IVA's, which do incurr fees. Niether CCCS or PAYPLAN directly administer IVAs, but will be able to reccomend a reputable Insolvency Practitioner.
Private 'Debt Management Companies' on the other hand, do charge fees, whether it is from the 'debtor' or from the 'creditors'.
Advice from this site is NEVER to talk to a 'Private Debt Management Company' before talking to one of the recognised 'Debt Counselling Charities'.
To me, there is no debate.I am NOT, nor do I profess to be, a Qualified Debt Adviser. I have made MANY mistakes and have OFTEN been the unwitting victim of the the shamefull tactics of the Financial Industry.
If any of my experiences, or the knowledge that I have gained from those experiences, can help anyone who finds themselves in similar circumstances, then my experiences have not been in vain.
HMRC Bankruptcy Statistic - 26th October 2006 - 23rd April 2007 BCSC Member No. 7
DFW Nerd # 166 PROUD TO BE DEALING WITH MY DEBTS0 -
Rusty
I see nothing wrong in asking the question. Are they free? Did you compare the total cost of your DMP with another company? MSE is all about shopping about.GSF
"The best way to save money is not to lose it!"0 -
i am at present on a dmp with cccs and it is completely free because it is run by a charity.i believe this is also true of payplan.national debtline is also free and is very good.the only cost involved with cccs is after you have registered by way of having to fone an 0870 number instead of the 0800 free number for initial enquiries.
i beleive these associations were set up to cope with the large volumes of people who had got into debt and wanted good advice.
when i did my own dmp some years earlier i ended up with lots of bank giros and paying in books but with cccs i have only one pdd payment to cccs every month to worry about then cccs pay all my creditors and send me a statement every month.
they are not the same as these companies on tv advertising ivas, which are not free.
cccs and payplan and nat debtline are also reccomended by some of the banks and credit card comps because they are so highly thought of and they hold alot of *clout* with these companies as they know you are serious about wanting to pay your debts,howerver long it takes.
cccs have saved me loads of hassle as your critors can fone them up after you give them an account number and discuss queries with them.
a dmp actually saves you money in the long run as most creditors stop the interest charges and late fees.
this is my experience anywayPeople bring great joy into our lives..some by arriving, others by leaving.im trying to be one of the former, so please bear with
LOVE ME, LOVE MY NEWFOUNDLAND.:A0 -
rog2
Debate is healthy. What are you worried about? Chartiable status does not mean closing your eyes and just accepting what has been put in front of you does it?
Ask questions.GSF
"The best way to save money is not to lose it!"0 -
gingersilverfox wrote: »Rusty
I see nothing wrong in asking the question. Are they free? Did you compare the total cost of your DMP with another company? MSE is all about shopping about.
MSE is all about SAVING MONEY - hence MoneySavingExpert. DFW is about wanting to be Debt Free - hence DebtFreeWannabe.
A lot of research/experience has gone into the reccomendations of Martin and his team, and many people, self included, will testify to the value of the information and/or help they have received from CCCS and PAYPLAN.
You are, however, quite correct - there is nothing wrong in asking the question.
I am just giving my reply - no doubt others will also give their views.I am NOT, nor do I profess to be, a Qualified Debt Adviser. I have made MANY mistakes and have OFTEN been the unwitting victim of the the shamefull tactics of the Financial Industry.
If any of my experiences, or the knowledge that I have gained from those experiences, can help anyone who finds themselves in similar circumstances, then my experiences have not been in vain.
HMRC Bankruptcy Statistic - 26th October 2006 - 23rd April 2007 BCSC Member No. 7
DFW Nerd # 166 PROUD TO BE DEALING WITH MY DEBTS0 -
gingersilverfox wrote: »rog2
Debate is healthy. What are you worried about? Chartiable status does not mean closing your eyes and just accepting what has been put in front of you does it?
Ask questions.
NOBODY is forced to accept anything that these people say, or suggest. Their advice is given free, in confidence and without obligation.I am NOT, nor do I profess to be, a Qualified Debt Adviser. I have made MANY mistakes and have OFTEN been the unwitting victim of the the shamefull tactics of the Financial Industry.
If any of my experiences, or the knowledge that I have gained from those experiences, can help anyone who finds themselves in similar circumstances, then my experiences have not been in vain.
HMRC Bankruptcy Statistic - 26th October 2006 - 23rd April 2007 BCSC Member No. 7
DFW Nerd # 166 PROUD TO BE DEALING WITH MY DEBTS0 -
ilovegreatdanes wrote: »....
cccs and payplan and nat debtline are also reccomended by some of the banks and credit card comps because they are so highly thought of and they hold alot of *clout* with these companies as they know you are serious about wanting to pay your debts,howerver long it takes....
Of course they are reccomended, they are set up or financed by the financial institutions. My point is why are the fi's ploughing money into them and who ultimately pays for it. It's analogousto the NHS is it free or do we indirectly pay for it?GSF
"The best way to save money is not to lose it!"0 -
gingersilverfox wrote: »Rusty
I see nothing wrong in asking the question. Are they free? Did you compare the total cost of your DMP with another company? MSE is all about shopping about.
Did I say there was something wrong in asking the question? Are you in the business of offering help to others?
Are they free? According to the reams of posts on here payplan/CCCS receive funding from the financial organisations so of course they do well out of this. I'm sure you will read many nightmare cases where some are being charged commission to pay off their debts.
No I didn't compare, and don't want to. I'm on a DMP and expect to pay this off in just over 5 years.0 -
GSF - I'm getting a bit confused as to what is the true point of your questions.
May I ask if you have any personal interest in any Debt Management Company?I am NOT, nor do I profess to be, a Qualified Debt Adviser. I have made MANY mistakes and have OFTEN been the unwitting victim of the the shamefull tactics of the Financial Industry.
If any of my experiences, or the knowledge that I have gained from those experiences, can help anyone who finds themselves in similar circumstances, then my experiences have not been in vain.
HMRC Bankruptcy Statistic - 26th October 2006 - 23rd April 2007 BCSC Member No. 7
DFW Nerd # 166 PROUD TO BE DEALING WITH MY DEBTS0
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