Is paid Debt Management REALLY so bad?

LandyAndy

WhyisFreeBetter wrote: »

Fair enough, but in my opinion the long-term members who see the unfairness of this shouldn't be supporting the few idiots, no matter how good these people look in their signatures.

I've been around other forums as administrator and moderator before (mostly computing or motorsport based), and I know how damaging it is to have such members. Forums need new members.

Easy answer. Post an SOA on here and start getting some free and impartial advice.;)

Numpty_Monkey

WhyisFreeBetter wrote: »

I remember Egg telling me a while back, when I ask them about options (when the trouble first started), that they only dealt with free companies. I wasn't sure if that was just a help desk script though.

Actually, I haven't had that advice from Payplan (although I suppose it is fairly obvious). Maybe that comes after I've sent back the initial document.

Come back with a different attitude:o

we will and do help anyone, who asks for help , you start having a pop at the real helpers of people, the Debt Charities, The Board Guides, The Members

start being nasty and we will and do protect people

WhyisFreeBetter

ghostmadlittlemiss wrote: »

I think it might have something to do with your screen name. It makes it sound like you signed up merely to ask that question and that seems a bit suss.
Kayleigh

That did occur to me. Still, doesn't warrant abuse and being told 'Leave the forum them' when I abject.

Cool name by the way. Fish would be proud.

happy_peach

WhyisFreeBetter wrote: »

I remember Egg telling me a while back, when I ask them about options (when the trouble first started), that they only dealt with free companies. I wasn't sure if that was just a help desk script though.

Actually, I haven't had that advice from Payplan (although I suppose it is fairly obvious). Maybe that comes after I've sent back the initial document.

If you search on this site, you will find more information about token payments.

Egg's default letters to me, and their website all had CCCS, Payplan, National Debtline etc as contacts if you were experiencing difficulties.

WhyisFreeBetter

Numpty_Monkey wrote: »

Come back with a different attitude:o

we will and do help anyone, who asks for help , you start having a pop at the real helpers of people, the Debt Charities, The Board Guides, The Members

start being nasty and we will and do protect people

With all due respect, that is not fair.

Re-read the thread and it is quite clear I have not been nasty to anyone, except saying 'idiots' after a bunch of abuse from people that wouldn't even respond to me.

I understand what its like to be a long-term member of a forum, and how members protect each other, but this is going too far. And I received more abuse than help. I don't think that is the point.

angelflower_2

WhyisFreeBetter wrote: »

Thank you. My problem is I left things too long. I'm pretty worried the really serious stuff is just around the corner. I suppose that's my main concern with regards to the speed of it. You're right though.

In that case, why dont you drop a letter of to your creditors this week whilst Payplan works through the initial paperwork) and offer them regular token payments for the moment, this at least shows a willingness to be trying to sort it out. Not very good at doing the linking thing here but there are sample letters somewhere. One of the regulars who are more experienced than me will post this for you.

You could also post up your statement of affairs and have us have a look over and give you some suggestions. Boards are closed tonight for two days so you might want to sign up again under a fresh name and come back monday for a fresh start

ghostmadlittlemiss

WhyisFreeBetter wrote: »

That did occur to me. Still, doesn't warrant abuse and being told 'Leave the forum them' when I abject.

Cool name by the way. Fish would be proud.

Thanks. People can get a bit over-defensive on here sometimes but that's mainly because a lot of newbies come on here thinking about suicide. So we tend to ere on the side of caution if something doesn't look right.
Kayleigh

rog2

WhyisFreeBetter wrote: »

One thing is bothering with regards to advice I've come across. That is, why is free debt management better?

This is a serious question,

1) Free debt management organisations are incredibly busy and you have to wait a long time (by this I mean 1 some weeks, months). For me more time = more stress.

Only RARELY does it take 'weeks' or 'months' and most Debt Counselling Charities have comprehensive 'on-line' advice.

2) I would expect there to be more incentive for a paid debt management company to help you as they only get paid from you.

LESS incentive, to be honest. Whilst some 'debt solutions' are paid for by fees directly paid by the debtor, other options, including IVAs allow the Debt Management Company to 'take' their not inconsiderable fees frm the debtor's agreed monthly payment BEFORE distributing any money to creditors. In a DMP administered by one of the Debt Counselling Charities ALL money paid by the debtor is distributed to creditors.

3) Paid debt management companies rely on reputation to some extent - word-of-mouth for example.

Paid debt management companies rely on the gullibility of debtors, whom they tempt by often misleading adverts. They can do this because the 'Debt Management' market is so lucrative that the cost of the adverts are peanuts when compared to the potential profit. The Debt Counselling Charities, on the other hand, spend their money on the important business of 'Debt Counselling' and ensuring that their counsellors are fully trained and competent. It is THEY who rely on 'word of mouth' and reccomendations by other institutions.

4) When telephoning with questions, it is clear free debt management organisations have less time available than paid ones.

When telephoning ANY organisation that is 'SELLING' a product you will be confronted by Salespeople rather than Counsellors. 'Sales' organisations are trained to make potential clients feel important but they do tend to change their approach when you tell them that you do not wish to purchase their product.

I would only ask this (although I'm well aware I can't really ask for anything!). Look past the 'no fees' aspect before considering this. I'm not saying paid is better, not at all. I'm just saying it might not be worse when taking everything into account. That's assuming the paid company is a decent one.

Unfortunately it is, all too often, too late in the day when the debtor realises that the 'paid' company is no good.

All I would add to my comments is that this site, and others, wholeheartedly support the work that the Debt Counselling Charities are doing, especially in today's challenging climate. Of course they can't always respond at the press of a button, but, when they do, you can be reasonably sure that the advice they give will be not only free but professional and impartial.

I can not, for the life of me, see how any 'for profit' organisation can claim to be impartial.

RAS

Hi

SOA here http://www.makesenseofcards.com/soacalc.html Please add APRs, limits and minimums for cards.

And if you have business debts and costs and household, separate them out. We get folks paying the advertising bill for their business out of household expenses for example.

letters link here http://forums.moneysavingexpert.com/showthread.html?t=963087

And if things do start to hit the fan, there are several options.

One I definately recommend if you think things could get difficult is to request the CCa for all loans, CCs and catalogues prior to April 2007.

LandyAndy

WhyisFreeBetter wrote: »

With hall due respect, that is not fair.

Re-read the thread and it is quite clear I have not been nasty to anyone, except saying 'idiots' after a bunch of abuse from people that wouldn't even respond to me.

I understand what its like to be a long-term member of a forum, and how members protect each other, but this is going too far. And I received more abuse than help. I don't think that is the point.

SO.... Instead of batting on about this give us an SOA and see how helpful we can be.