Debt Management.... yes or no, please help?

I_need_help?

I had a debt management company call me tonight telling me all about how they could organise debt and halve my outgoings on repayments on loans and credit cards. Too good to be true I thought, what happens to my credit rating and also we have a mortgage, what happens when we come out of our fixed rate and need to re-arrange our mortgage, will we have problems? the debt company take 13% works out 65 a month but the interest will be wiped off our debts - WHAT DO WE DO? does it depend how much debt your're in???

I'm worried about my house more, 325,000 mortgage, house worth 400,000.

crapwithcash82

Hi There, I think there are debt management companies out there which are charity funded so they don't take a percentage, I think it sounds like you'd be best to go with one of them instead of somewhere thats taking a cut. You would be best putting the extra money they'd be charging you against the actual debt. Someone who is in a better position to advise you will probably come along soon!!

fatbelly

Good grief! When you're having money problems the last thing you need is someone else to make payments to.

Tell them to get lost and talk to one of the fee-free agencies - CCCS, CAB etc.

Have you read the problem debts guide above?

You may want to post a SoA here and let us have a look at it. There's a guide to this here

Welcome to the Board and well done for posting!

smashedbooboo

Nooooooooooooo, do not even think about it. Sorry Hi and welcome hun, It will be a bit quiet tonight so please dont think you are being ignored. There will be lots more peeps on in the morning who will be able to help you. But on this question this a big no no. They charge a fortune for what they do. There are other ways to sort out debt. Could you possibly give us some info on the debts you have and we will try and help you here. As i say there are lots more peeps around in the morning so please dont give up. Well done for coming here. You will get masses of support.

Boo xxxxxxxxxxxxxxx

coolcait

Good advice from the other posters. And if you're in Scotland, you might want to take a look at the Debt Arrangement Scheme (www.moneyscotland.gov.uk).

It's free, and creditors HAVE to freeze interest, by law. In voluntary debt management plans they can CHOOSE to freeze interest (and often do), but they're not obliged to do so, as far as I'm aware.

I echo the advice to talk to one of the FREE advice organisations before you do anything else.

Good luck!

MrsTinks

would you buy double glazing from someone cold calling you? would you buy a new kitchen if they called you and told you your postcode area qualifies for a special offer? would you hire someone who knocked on your door and said they could "do your drive for £100 cash in hand like"...?
No... So don't use cowboy companies that call you trying to sell you something like debt management
Firstly - are you struggling to pay your debts? If so post an SOA and let's have a look at what plan of action is best for you :)If it IS a DMP or even IVA (not likely) then any of the free charities in my signature will be able to help you (IVAs are different but I really don't think that's applicable...)
As for the "interest being wiped off"... uhmmm NOT gonna happen - this is naughty to say to you as they can't guarantee that. On a DMP your creditors might freeze interest... but they certainly don't have to!
Will it affect your credit score... well... you'll basically default on ALL your debts... yes this will have an impact on re-mortgaging when the time comes.

smashedbooboo

And yes it would affect your mortgage if you go with one of these companies. Please wipe the phone call out of your mind. And the interest is not always stopped. there are some real horror stories out there. Please dont be another one to add to the list. xxxxxxxxxxxxxxxxxxx

smashedbooboo

You beat me to it Mrs Tine. xxxxxxxxxxxx

InDebted2U_2

DON'T PAY FOR DEBT MANAGEMENT! :eek: Phone National Debtline on 08088084000 and get free unbiased advice and assistance. They are fantastic and a real life-saver.

(Sorry if I sounded like an advert at the beginning there, lol!) :rotfl:

I_need_help?

Thank you to everyone, the DM co. are sending me the info today but will ring and tell them not to. I have never even looked into this option and was really worried when it came to re-morgaging. How do I do a SoA, do I just list everything here? or is there a template, sorry to sound niaive but never done this before.....

I_need_help?

found to SoA guide now!