Naive question time!!

shellabear

I'm trying to get a DMP but I keep hearing on the radio about being able to reduce your payments and then your debts being cleared in 5 years.
Is this something different? is it a no-no? if i do a DMP with CCCS will it take years and years to pay off or will the Loan/CC company's write it off? confused

Tondella

if they are offering to reduce payments and have the debt paid off in five years then either a) the person was paying Waaaay too much interest or b) the debt could have been paid off earlier with more money.

Basically the advert will be based on a case study and somewhere there'll be small print to say "typical" (i.e. does not apply to you). You also have to pay a fee to these debt management companies, sometimes quite a high fee, and lenders tend to look down on debt management plans formulated by these guys because they are thinking "if he can afford to pay them to sort out his debt then he can afford to pay us more money off his debt"

Unfortunately no one will take the debt off you or magic it away. speak to a free debt management company (CCCS or Payplan) who are respected by the industry and do not change a penny for their services.

EDIT: or they might be talking about an IVA, which again costs alot to arrange and is a whole different thing to a debt management plan. CCCS or payplan would advise you if they thought that a debt management plan was not suitable for you in the first place. And they'd give you this advice for free

Montymoo_2

Arent such adverts talking about IVAs???

shellabear

It could be an IVA. to be honest i switched off when they said 5 years because i wanted to check with this forum. if it was a con someone here would know.
Thanks for your replies.

shellsuit

Is this the company you mean? It's been on TV all week and radio too

http://www.debtfreedirect.co.uk/L_debt01.php

shellsuit

Montymoo wrote:

Arent such adverts talking about IVAs???

Yep, just saw this on the site I've posted on the previous post

For debts over £15,000 when you're regularly employed, an Individual Voluntary Arrangement (IVA) is often the best solution. Call us to find out more

fizzel81

Tondella wrote:

if they are offering to reduce payments and have the debt paid off in five years then either a) the person was paying Waaaay too much interest or b) the debt could have been paid off earlier with more money.

i think this is the reason behind barclays not accepting our reduced offer through b&e i never realised that companys thought in this way untill now, i wish id joined here a few months earlier, i would never have knownly touched b&e i think that is the biggest mistake we made, unfortunatly companys like cccs and payplan were not known to us i guess it would have paid to research into it more before we did what we did

fizzel81

Tondella wrote:

Basically the advert will be based on a case study and somewhere there'll be small print to say "typical" (i.e. does not apply to you). You also have to pay a fee to these debt management companies, sometimes quite a high fee, and lenders tend to look down on debt management plans formulated by these guys because they are thinking "if he can afford to pay them to sort out his debt then he can afford to pay us more money off his debt"

sorry i meant to quote this in my previous post