Which debt management agency to use?

Chrismojam

This isn't for me by the way. I'm pretty much on board with sorting out my debts.....thankfully...

I've just had a visit from by 18 year old nephew and his girlfriend (who 6 months gone).....She's not working, he is ...they are about to move into a one bedroom house (private landlord grrrrrrrr) which is going to cost £600 per month rent though they will get £30 per week housing benefit (big whiz!!).

They seem to think that after 6 months or so they will be able to get something off the council as this place will be too small.

However, as an aside they happened to mention the £16k plus debt that they have between them :eek: :eek:

I nearly fainted! With so much else going on it quite upsets me that they are starting out with soo much debt.

I mentioned about the likes of payplan to help sort out creditor payments, because there is no way on this earth they are going to be able to afford them....

However, I have no experience of these 'agencies'....are they completely free? Is one any better than the other?

Any advice?

southernscouser

Payplan and The CCCS are both registered charities and are completely free.

The rest of the companies who offer Debt Management Plans will take a fee from your mothly payment. Avoid these like you would bird flu!

The CCCS and Payplan both offer the same services. They are both very highly thought of on these boards and I haven't heard a bad word about them.

I get the impression The CCCS are the busier of the two (takes longer for them to call you back) but I don't think it is a reflection on eithers services or anything!

SS

Chrismojam

Having a look at payplans website now....probably have a look at the other one later.

At least I'll have the details to give to my sister.......have to be careful there though...not sure if she knows how much debt they are in!

Although she has sorted out the other son's debts (I don't mean as in paid them....but she got onto the debt management agency that he lumbered himself with - he thought he was doing something right by sorting this out himself........unfortunately got lumbered with one of those who take a large chunk of the payments as fee) and being the gentle soul that she is (NOT) got rid of them and is dealing with the creditors herself...

Hopefully the kids can sort things out.........not the best way to start out on family life! :rolleyes:

lynzpower

Incidentally, if its a 1-bed flat, or even studio flat, they wont be classed as "statutorily overcrowded". I had a case of mum, dad two kids, mum with severe illness all in one bedroom - but as they had a lounge that could be used as a bedroom, not overcrowded.

First thing Id do is see if they can back out of the contract, may mean losing the deposit, and present to the council as homeless.

I would say, surely, they must have stuff they can flog have they?

Chrismojam

I was thinking the same.........Council's aren't as forthcoming as kids (or anyone else for that matter) think when it comes to housing...

I think the idea of emergency housing put them off and somebody I presume has advised them to do this instead........but paying such a rediculous rent at that age...even with HB it will be £480 a month.....they won't survive never mind pay off their debts

Don't know what all the loan money has gone on (I'll speak to my sis later...she might have a clue)....but I bet they haven't got much to show for it............

:rolleyes:

lynzpower

as a family ( ie once the baby is born) they will be classed as in priority need. YES, they will have to put up with a hostel for 6 weeks, but the law has changed, and once those 6 weeks are up ( and yes, they do HAVE to actually kip there) then they are ENTITLED, by law to be moved into self-contained accomodation ie a council flat, or one "bought in" from the private sector, and funded by HB if they are entitled to it. If they DONT automatically get moved, they need to go to either thre CAB , or shelter or another housing agency and get them to put pressure on for them to move. I have heard unconfirmed rumours of familys suiing the LA for distress if they havent been moved after the 6 weeks. Yes, they wont get much choice, but it will be affordable for them. Id ask, is he entitled to HB? ( not in relation to this flat specifically) I cant imagine at 18 he'll be earning that much. Once theyve stuck it out in a private rented flat for approx 2 years ( in london anyway) they are v likely be moved to a LA flat, or if there is a bidding system in place then they can bid away at whatever theyd like. Do drop me a PM if you want more.

Broken_hearted

We don't use any they wouldn't take us on when we needed help. They said we didn't have enough money to be able to pay. They basicaly told us we were going to go under, so we struggled on by ourselves refusing to go bankrupt as I would never give up my home. I spent hours on the phone sorting out my own payments getting interest stopped and charges actualy asked for the main accounts to go to debt collection.
Now I have a debt free date of 2008 and a mortgage free date of 2015.

Chortle_2

Good luck in helping them out Chrismojam!

Anyone else find it incredibly sad (and more than a little worrying!) that an 18 year old can run up that level of debt within a year of becoming eligible for credit

Broken_hearted

Chortle wrote:

Good luck in helping them out Chrismojam!

Anyone else find it incredibly sad (and more than a little worrying!) that an 18 year old can run up that level of debt within a year of becoming eligible for credit

Yes but not suprising.

aimme13

i used pay plan and they were great, one thing that some people may not like is the fact that u are no longer allowed any form of credit (even an overdraft).....and taking out a mobile phone contract wasnt possible (although done in my sisters name).....so they have to be prepared to live on the money they get.....no cards no h.p. no credit!! its easy for me as i know it is for the best, however not sure that a young couple will be able to do this, as it seems so acceptable to live of credit......if they can do this then payplan is the best solution......good luck to them both...........also on the housing situation, i was pregnant with my second child when we were made homeless, i was offered b&b from the council but would have to pay for the privalige as my OH was working......it just depends on where you live and your local council.

Chrismojam

Chortle wrote:

Good luck in helping them out Chrismojam!

Anyone else find it incredibly sad (and more than a little worrying!) that an 18 year old can run up that level of debt within a year of becoming eligible for credit

Not sure how much of the debt is my nephews.....like you say he is only 18 ....his GF is 22 ish so she's had 4 years to rack her debt up.

But it is soo easy for them to get credit isn't it...........and at that age its like wahey..they want to give me money!!Lets spend spend spend........on crap usually...

I mean I get enough junk mail about credit for loans cards etc .......probably about 10/15 a week.........and my other half..........who's had ccj's in the past and can't even get a proper current account gets them as well!! Stangely enough.....he keeps getting applications forms for loans and cc from Halifax but they think he's too much of a credit risk to upgrade him from a cashcard account? :rolleyes: