Debt Management

jules30625

Hi, Im wondering if anyone has some advice. I have approx £14k debt. 10k is on credit card, and im only just managing to pay the interest and no more, 2k is my overdraft, and the other 2k is a loan that i have. Im struggling to meet payments now, and i saw an online advert for Blue Finance Management. I spoke to them today and they told me they could help me with a debt managemen plan whereby they take control and pay an agreeable amount to the creditor every month, and taking a 15% cut for themselves. When i think of the interest im paying on my overdraft alone, and then the interest on my credit card, this starts to seem like a pretty good way out of it. Has anyone else gone down this route successfully?

poorandindenial

Hi Jules

Welcome to the boards

Lots of people on here have done this, but NOT with a company that you have to pay money to (or not for long)

If this is the right solution for you then you can manage this yourself or use one of these fee free organisations to do it for you:

http://www.moneysavingexpert.com/loans/debt-help-plan#help

why not pop up your statement of affairs on here and we will see if we can help you find the best way to make the most of the money you have www.makesenseofcards.com and click on statement of affairs calculator.

All the best for getting sorted and PLEASE don't pay someone to do what you can do for free

fermi

There are many people here on Debt Management Plans with CCCS or PayPlan.

They don't take a fee, and are generally more successful at getting interest and charges frozen.

There is no need to use a fee chaging DMP provider.

Don't take my word for it. You are posting on Martin Lewis's website, this is HIS advice.

From the article: Debt Problems - Where to start, what to do, where to get help

The right people to go to

You need non-profit debt counselling help, in other words a one-on-one session with someone who is paid to help you, not to make money out of you. This is different to ‘free’: many commercial companies say they’re free as you’re not charged directly, but you’ll still pay somehow. The places I'd recommend are:

Consumer Credit Counselling Service - Website: CCCS Telephone: 0800 138 1111

National Debtline - Website: National Debtline Telephone: 0808 808 4000

Citizens Advice Bureau - Website: Citizens Advice or visit your local CAB centre (find nearest

Community Legal Advice - Website: Community Legal Advice Telephone: 0845 345 4 345

These counsellors use a variety of techniques, you may be put on a debt management plan, where they negotiate with your creditors. You may be recommended an IVA (Individual Voluntary Arrangement) or even bankruptcy (not as scary as it sounds). They will certainly show you how to prioritise the most important debts to enable you to keep food on the table and roof over your head.

Most importantly they're not judgmental, they're not there to tell you off, they're just there to help you sort out the problem. The sooner you talk to them the better. It may help you sleep at night.

Unfortunately they can be oversubscribed. If it takes time to get an appointment with them, use the info on their websites to start to plan. There may also be a local debt councillor in your area, such as Christians Against Poverty (not about religion even if it sounds like it) but ensure it is a non profit/Charity.

The wrong people to go to

Avoid any of the beasts that advertise debt help or management on the TV or in red top newspapers. They are commercial companies who simply want to make cash out of you, they don't care. While in the short term their plans will make your payments lower, in the long run it'll cost you dear. Avoid them. Don't touch them. Don’t go near them.
I think this post from the Chat Forum explains it better than I ever can:

"We, my wife and I, are on a seven-year plan with CCCS" (that's the Consumer Credit Counselling Service, one of my recommended agencies – Martin) "having recently changed from a commercial debt management company after hearing Martin on Radio 2's Jeremy Vine show. The simple action of swapping to the CCCS has shaved over two years off the length of our plan as the money we were paying the management company now goes to our creditors instead! Of course, that also means a financial saving of nearly eight grand over the term of the original plans 10 year period."

This includes IVA companies who advertise about “a little known government loophole”. While it sounds good, it’s only for a few people. If it is for you the debt counselling agencies should suggest it.

10past6

Fermi (above) has given good advice, but for confirmation look at my signature

Numpty_Monkey

Hi and welcome:hello:

I think poor and fermi have said it, don't go with a fee charging company

I'm on a DMP with CCCS:A,


Maybe you might not need a DMP, just some bugeting advice or other tips , if you post your SOA and let the clever people go through it, , and maybe point out where you might be able to make savings

:A