Looking for some advice on best solution for my debt problems

Broke_Stu

Hi, this is my 1st time posting on the site, so be kind? i hope im posting this in the correct area. I just wanted to find out what the best solution for my situation is before i commit to a debt management plan. My problem is i have 5 credit cards and owe a total of 15000 approx on them, i have a good full time permanent job but meeting the payments each month is difficult and i am more frequently finding myself in arrears and getting bank charges as a result of this. I cant seem to get a loan to consolidate these debts and i dont seem to make any progress towards clearing them as the interest cancels out my payments most months. So ive spoke to a couple companies about entering a Debt Management Plan whereby i pay them each month, they get the interest etc froze and deal with the companies on my behalf, this would help me as id be able to reduce my outgoings on servicing my debt and allow me to make just 1 payment a month without direct debits coming off at various times. So my question is in light of what i have told you? do you feel this is the best solution for me, what are the negatives of entering an agreement like this? do i really have any other options?? I will be very grateful for any advice given, i just want to be sure this is the right move to make for me in addressing my debt. Thanks in advance.

sgt.tibbs1977

It would be difficult to say what would be the best solution without having a full run down of your financial affairs but a debt management plan (DMP) is certainly an option. However, the important thing to remember is that there is FREE agencies out there that will do this on your behalf or show you how to do it yourself:
CCCS
Payplan
National debtline
Citizens Advice Bureau
All can help either to get you in a DMP or point you in the right direction in respect of a self help guide.
You may also be able to consider a number of insolvency options also but you would need to speak to someone more indepth as there can be serious repercutions to entering into them and conditions do apply to them as well. Payplan do IVAs, DROs and can advise on bankruptcy. Be careful with IVAs as there are a number of companies out there that will say you are suitable when you may not be. Payplan have a good reputation as do all the other agencies listed above. If you go down the self-help route ensure that all interest and charges are frozen, however, at the moment this is easier said than done. If you are in a DMP any of your creditors are able to take court action and any paperwork should be responded to appropriately otherwise further action could be taken by your creditor. Good luck.
NB. This is only an overview of debt management strategies and not specific to your particular situation, full advice should be sought from one of the above listed agencies.

Moggles_2

Welcome to MSE!

I would avoid this route, if possible. They will be marked as "arrangements to pay" on your credit file and that would affect your ability to get credit for 6 years. While you're meeting the minimum payments, your credit rating remains unaffected.

Have you tried asking each of your credit card providers to reduce the interest rate(s)? (You can do this over the phone.) You may be able to reduce your costs considerably. For details, see Martin's *Credit Card Shuffle*article

http://www.moneysavingexpert.com/car...-card-interest

Your post raises some other issues and you may want to post again on the *Debt-Free Wannabe* board. You'll get lots of advice and support there.

http://forums.moneysavingexpert.com/forumdisplay.html?f=76

sgt.tibbs1977

Have just noticed you are Scotland, the advice given relates to England. Further advice should be sought in respect of scottish laws also. Sorry

SwissLe

Hi, welcome to the site.

You would be better off posting this in 'Debt Free Wannabe'. Loads of people will be able to help you and advise you on producing a complete SOA.

Thanks!

Broke_Stu

Thanks for the help guys. Im actually just off phone to someone from Scottish debt management website and they are suggesting that i instead enter a trust deed. Im not sure what the difference is but this sounded a good option. I will try and repost this in the other forum like you have suggested.