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gibson_2

I am very worried about a member of my family. He is over £25k in debt and can no longer keep his head above water. He came around tonight with what he thinks is the answer to all his problems.
Has anyone heard of a company called The Debt People. They claim to negotiate with creditors on his behalf, he pays them £250 a month and whatever debt is left after 5 years it is written off !!!!
Well, he is ecstatic, but i'm being a bit more realistic and thinking £250 x 5 years is £15k why would anyone write off a further £10k?
Please help, i'm really worried he going to go with this option and get into deeper water. Does anyone know anything about this company?
Thanks

YorkshireBoy

A google search has thrown up...

The Debt People
2, Slaters Court
Princess St
Knutsford
WA16 6BW
Telephone: 0800-028 5286

http://www.thedebtpeople.co.uk

kickingkay

hi, well there is such a thing as debt free in 5 yrs however its more detailed than just writing it off, im not sure who the company mentioned is but im sure with some search on internet then it would prob find them to be fee based ;
this would mean he will be paying them £250. of which they would have already deducted their fee (excuse me if they are not fee based)
as for the final £10000, well let me show you
60 mths x £250 = £15000 = £10000
they calculate up to maximum 75% off the outstanding debt eg
25k - 75% =£18750 to be paid back
he would then have to release the remaining debt (however much agreed to be paid )from his property eg £6250 but if they are fee based then he would need to releawse more than this as he wouldnt actually be paying £250 pcm, i was quoted 15% would be taken from the monthly installments i would be making well in 5 yrs that would amount to alot!
i really hth it might seamed garbled but then thats why im in this mess lol
tc klare xx

donnalove

sounds like an iva proposal to me

Contains_Mild_Peril

Yep, I think the old maxim "If something sounds too good to be true, it probably is" might apply here. I don't know the company or how they work, but I know many companies make extravagant promises and write their small print in gibberish, which customers are often too embarrassed to admit they don't understand, so they just accept a salesperson's word. I would advise caution.

deemy2004

gibson wrote:

I am very worried about a member of my family. He is over £25k in debt and can no longer keep his head above water. He came around tonight with what he thinks is the answer to all his problems.
Has anyone heard of a company called The Debt People. They claim to negotiate with creditors on his behalf, he pays them £250 a month and whatever debt is left after 5 years it is written off !!!!
Well, he is ecstatic, but i'm being a bit more realistic and thinking £250 x 5 years is £15k why would anyone write off a further £10k?
Please help, i'm really worried he going to go with this option and get into deeper water. Does anyone know anything about this company?
Thanks

Ask the company to give it in writing... I bet they won't

They come across as a broker type company, perhaps looking to earn a commission from selling your relative a product and they definetly won't be party to where your brother is in 5 years time !

file_wizzard

gibson wrote:

I am very worried about a member of my family. He is over £25k in debt and can no longer keep his head above water. He came around tonight with what he thinks is the answer to all his problems.
Has anyone heard of a company called The Debt People. They claim to negotiate with creditors on his behalf, he pays them £250 a month and whatever debt is left after 5 years it is written off !!!!
Well, he is ecstatic, but i'm being a bit more realistic and thinking £250 x 5 years is £15k why would anyone write off a further £10k?
Please help, i'm really worried he going to go with this option and get into deeper water. Does anyone know anything about this company?
Thanks

Sounds like a fee paying IVA / DMP provider, steer well clear

CCCS or Payplan can do the same DMP ( Debt Management Plan ) for you free of charge, and probably far more professionally !

http://www.cccs.co.uk/


http://www.payplan.com/

Give them a try see what they sugest

gibson_2

Thanks for all your reply's. Yes this is an IVA, but what is that?
Also, it was mentioned that they would have to close their bank account and wages are paid to the debt company !!
I've told him to take all his paperwork to the cit Adv bureau, i just hope there is a way around this, without going down this road, it doesn't sound right. I suppose when you are desperate any glimmer of light sounds appealing, and you are more gullable to these sorts of debt people.
Anyone got any advice I can give regarding outgoings exceeding incomings ?

ManAtHome

Has he tried contacting the banks/card companies - given the recent rise in the number of bankruptcies (where they may get nothing), a growing number of institutions are prepared do strike a deal, particularly on reducing or freezing interest (this is pretty much what CAB and CCCS do for you by the way).

Xbigman

gibson wrote:

Also, it was mentioned that they would have to close their bank account and wages are paid to the debt company !!

Do not touch this in any circumstances. These companies have a habit of doing yearly revues and if they decide he could pay more they will just keep it.

DO NOT TOUCH.
Regards



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