Are there any nice consoliation agencies?

polen

Is there anyone who can help? Does anyone know of any nice consolidation agencies?
I am newly married and both of us had a few debts which we have been paying off, at the time we were living with relatives due to not being able to find our own place. We now have our own place (rented) which is brill but in the last couple of months money difficulties have increased due to increased outgoings but decreased income due to illness and loss of contracts, we both are sub-contracters. We have a new contract starting in a few months time but thats no good at the moment. A little while back we got a credit agency to help us but after paying them their fee we got the paper work back of what they said we could pay our creditors and we realised that monthly we would still be paying the credit agency money which we felt was a waste that could have been going to our creditors! My husband even sold his beloved bike to help but it just feels like an on going circle, so we thought for peace of mind using a consolidation agency would be the best, one outgoing payment. I then saw on this site about don't use hideous consolidation agencies, now I don't know what we can/should do, help!!

bigsaver_4

I have never heard of a "nice" consolidation company - They are basically loan companies that often charge large fees and interest payments over a longer term - thereby having the effect of increasing your debts.

As your problems are relatively short term, until your new contracts begin, Would your own bank not help - by giving a short term loan / extended overdraught etc?

You don't state the amount of debt you have, so it is difficult to give precise advice - If the debt is large I would advise you contact the Citizens Advice agency, or the National Debtline - They are very good at helping people in difficulty - and they don't charge for there help!

Hope this helps a little.

Jen_Jen_5

we realised that monthly we would still be paying the credit agency money which we felt was a waste that could have been going to our creditors!

You will waste more money paying interest on a consolidation loan!

Why dont you do what the debt management company were going to do but negotiate yourself (or via cab, cccs etc) you wont have the fee to pay and all your available income for debt will go directly off the debt

polen

Hi there thanks to those who replied soz i've been a while in replying but our lines been down twice due to nearby building work plus been using some of the advice which has been taking time... but it has been successful! My husband spoke to each creditor individually and most have accepted a payment we can afford.
We are just having trouble with one and so I come again for advice........ I have an overdraft with HSBC bank I have not used this for month but we have not been able to start paying the over draft off at all because I keep getting hit with the interest charge which is more than we can pay a month but we have been struggling to pay so i don't get the added non-payment of the interest charge on top of that.
( Interest charge a month £28 - £29 but if don't pay that they add £50 on top!) So we went to see them and explained what our other creditors were accepting and how they had frozen the interest etc, and could they help in a similar way? No was the answer but we could use their in bank telephone service and apply for a managed loan. That was no help whatsoever because for the managed loan we would have to pay £40 back a month over a 12yr period and with a higher interest rate than the overdraft!! Is there any advice for this sort of situation?!? ???

Jen_Jen_5

Put your offer of payment and request to freeze interest in writing, with a financial statement.

You may want to point out in the letter that the the banking code states banks will treat those who are in financial difficulties with understanding. (or words similar to that) I will find the details of the code and post again.

Well done to you and hubby for negotiating yourself - im sure youve saved a small fortune!!

Rafter

It sounds as if HSBC are being unreasonable here.

If you have told them you are experiencing short term difficulties they are obliged to treat you fairly and suspend interest and charges rather than charge you more than you can reasonably afford to pay in the short term.

I suggest you try again and tell them if they don't come to an agreement then you will get Citizens Advise to negotiate on your behalf.

R.

Jen_Jen_5

http://www.bba.org.uk/content/1/c4/19/24/BankingCode.pdf

The computer wont let me cut and paste the exact bit but im not that clever so it may just be me.

the section you want is 13.10 Financial Difficulties. It is a voluntary code but the banks do seem to want to abide by it.

Good Luck

Walletwatch

Nice consolidation agency

From what I have heard, that is an oxymoron

polen

Hi me again, sadly needing more help on how to deal with HSBC bank. My husband and I put together a letter including all that everyone had kindly recommended we put in it(ie,a financial statement of affairs,spoke about the banking code, explained current situation etc.)
We got a letter back from the centre manager who was no help whatsoever, the letter began with saying that ......

'it is not our policy to freeze or suspend account charges when our customers are finding it difficult to pay us.
Our offer of a managed loan was a way of helping you by repaying your overdraft and transferring the balance onto a loan. Your bank would then be in credit and you could make structured repayments to the new loan.'

She then went on to explain all about a managed loan, but in the letter we had sent we had said how on our first trip to the bank the staff had recommended this so we had looked into it (you had to do it via phone) and the lowest repayments to this loan were higher than the interest rate i was already having trouble paying, the member of staff on the phone actually told my husband i'd be better off not getting the loan as the repayments were higher!

The letter the continued ...
' We note that your bank account balance is currently exceeding the agreed overdraft facility. This being the case charges other than debit interest may also be incurred ....'

I had actually pointed this fact out in the letter saying how I had not been able to pay the December charge (taking me over the overdraft facility) and knew that that would also incur another charge.

So I just don't know what to do, i haven't been able to make this months interest payment charge either which will mean another added charge. My husband says we should sent the letter again. All i want to do is sort things out and start paying my debt back, any advice, please!

madfish_3

I had the the same experiance 3 years ago while arranging repayments for debts i built up while i was a self employed electrician (was taken for £6000) most companies accepted the repayments but some like HSBC would not.

All i can suggest is as you have already done give them a statement of earnings and make them an offer, no matter what they reply pay your offer every month.

HSBC's only option to reclaim the debt will be to get a CCJ against you therefore freezing there interest or accept the agreement any court will agree that if your statement of earnings is correct and you are making an offer then HSBC are being unreasonable.

Downsides are your credit rating will be affectred however its not such a bad thing.

As others have stated National Debtline are fantastic and there factsheet is a real eyeopener as to what you can do, I also recently transfered all my debts to payplan which has been a big help also.

jen_jen_2

Hi, it is me even though ive lost my capital J (and star)!

HSBC are being awkward gits. Call national debtline or visit CAB, exactly the same letter from them may produce results. The other way is just wait until HSBC decide that you are actually trying to tell them your situation and will pass to the debt collection dept. this may be after some further charges are added.

alternatively a complaint letter to the bank with a copy of the origional telling them they are breaking the banking code. Also a copy of the letter sent to the OFT who monitor the banks.