Debt Management Plans

scott_247

Hi all
My first post to the board...go easy on me!

I have approx £13k of un-secured debt and i have been contacted by 'debtfixers' and created a Debt Management Plan. From what i can gather they negotiate with my creditors and try and get the interest frozen on my accounts and arrange for a lower fixed payment which then gets paid to my creditors.
Does anyone have any experience with this kind of thing?
They are charging me £100 'Admin' fee for setting it up and then they take 17.5% of every payment i make as a fee.
The debt is made up of a bank loan and 2 credit cards. They have asked me to cancel my direct debit to the bank loan, which i have already done, but i am worried about my credit score now. I have never missed a payment for anything in my life and do not really want to start now.
Where as i do have debt problems, i still manage to make payments but i do not have any disposable income at the end of it.
My wife is due to give up work soon due to a 2nd child on the way and her income will dry up.

Any advice or help will be greatly appreciated.

~Beanie~

DON'T DO IT!!!!

You can get a DMP set up with CCCS or PayPlan who won't charge you any admin fees or other fees. Why pay debtfixers when the money could go towards repaying your debts!

A DMP will definately affect your credit rating as well because you will be paying less than the agreed monthly payment.

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

natsplatnat

NOOOOOOOOO!

As above, there are plenty of FREE options, meaning you can put more toward your debts!!!

Wishing you all the best on your DFW quest!!

Numpty_Monkey

Like beanie says don't do it
Why pay a company for something you can get for free
You will have more chance of your creditors accepting a DMP from one of these
Non-profit Debt Counsellors' List

Numpty_Monkey

I think thats about as nasty as we get here

scott_247

Excellent response. Thanks.
I have contacted them and have cancelled my plan. My only concern is that i gave them my debit card details for them to take payment on the 24th of this month. I have told them not to take it, just hope they dont!

They gave me a load of spill about 'Nothing for free' yadda yadda.....but told them i got treat advice from this forum.
Cheers!
:beer:

reaver

I'd let your bank know that you have cancelled any payment going out to that company. Not that I'd doubt the company's integrity of course... :rolleyes: