Debt Consolidation Companies

BeerBelly

hi there i am not managing my debt and the interest rates are crippling me laving me with hardly anything at the end of the month. i have contacted a company called Baines & ernst who said that i can have a 5 year plan that will freeze interest and also make my debt more manageable over a 5 year period and its a free service...could any one tell me if they have had experince dealing with this company and if its safe and also if theres another option i can take whwre i dont have to change my bank (one of their requirments)
Thanks

Ames

Are you sure it's free? B&E usually charge for this service. There are companies that do it for free though - CAB, CCCS and Payplan. They're recognised by the industry too so you've more chance of having interest and charges stopped.

If you owe money to your bank, or a company affiliated to your bank then you'll have to get a new account whoever you go with. That's because they'll have right of recovery - they can take any money in your account even if you don't want them to.

**Amy**

As above poster has said get in contact with one of the free debt charities:

www.cccs.co.uk or www.nationaldebtline.co.uk or payplan etc.

xxx

CCCS_Sarah

Hello,

There is never any guarantee that creditors will stop interest and charges, as ultimately it is down to the creditor.

There are many fee charges companies out there that will take a proportion of your monthly payment to distribute your payments.

If this was the case, you would be better either going to one of the non profit organisations such as CCCS, National Debtline or CAB. Or you could do this yourself.

A debt management plan is not always the best option for everyone. CCCS have a free online debt advice facility called Debt Remedy. Debt remedy will allow you to input all your income and expenditure, details of your debts etc and will then provide you with your best route. If your interested in Debt Remedy this link will take you directly to it.

RAS

Beerbelly

If you search here you will find that baies and Ernst feature regulalry and that they charge about 15% of the money they receive as fees for the privelelge of doing something that CCCS, Payplan or CAb would do for free.

The other thing is that a number of people with lower surpluses seem to pay B&E far more per month than they would pay if they went to CCCS or Payplan or CAB, because the allowance that they make for living costs are lower. So they have a much poorer life and pay loads of fees when they need not do so.

Deep_In_Debt

Yep, as others have said, please contact one of the FREE companies. Baines and Ernst are not free and I suspect they are recommending an IVA which is NOT free and has big implications if it fails - like bankruptcy. IVA's are suitable for only a small percentage of people if you have property to protect for example.

Please, please do not go with B&E but contact the FREE debt charities who will offer advice in your interests and won't be lining their pockets from your debts.

Good luck and keep posting here.

Jacks_xxx

Just echoing the others

Don't Do it Hon!

Baines and Ernst are misleading you - you pay their fees out of the money you think you're paying to your creditors.

I'm not sure from what you have said if they are talking you into an IVA or a debt management plan but either way you would be better off with CCCS who will not be looking to make a profit form you so will just give you the info - and not the hard sell.

Love Jacks xxx

opalfruity_2

Hi Beer. they are offering you an IVA. if it goes through the interest and charges wil be stopped. im currently on an iva with them, they take an upfront fee.

sdots

Hi, my first time posting. It's refreshing to see the vast amount of free information there is readily available. I've recently joined Baines & Earnst, they have only taken my first introductory payment, so does anybody think this would be retrievable. It has been over 14 days, however reading the reviews, I've decided to cancel my plan with them by giving them a Call tomorrow and also going at it alone with my creditors. I think the near enough £50 can be given to my creditors to reduce my debt and get that credit history clear as soon as possible.

tealady

Hi sdots. yes I would cancel your plan If start a thread of your own. then you can put up your statement of affairs (SOA), I am sure someone can point out some savings somewhere for you.

harlequin

BeerBelly wrote: »

hi there i am not managing my debt and the interest rates are crippling me laving me with hardly anything at the end of the month. i have contacted a company called Baines & ernst who said that i can have a 5 year plan that will freeze interest and also make my debt more manageable over a 5 year period and its a free service...could any one tell me if they have had experince dealing with this company and if its safe and also if theres another option i can take whwre i dont have to change my bank (one of their requirments)
Thanks

A normal B & E plan will attempt to freeze interest though it is up to the crediter whether they do or not (some do, some don't) and negotiate lower repayments over a longer time however B & E charge a monthly management fee for doing this and it is quite high.

This 5 year plan maybe an IVA this is also not free as there will be fees associated with it sometimes as much as £2,000 which will be added.. All IVAs as far as I know attract fees.