Paying back an old loan - please help!

KiKi

Hi Darren

I don't know the companies concerned. However, I looked quickly at both websites.

'Trapped' are merely an 'introduction' service to an IVA firm. They will no doubt take a commission for referring you. E&B provide a service that they will be charging for. You may be more than happy to pay them to do it. But wouldn't you rather that money went on your debt? Do you know what the breakdown is? Is that £272 going on your debt? Or are they taking £50 of that for themselves each month? Because if they are, your debt is now £20K plus £50 every month!!!

Why should you pay a company to do what other organisations and charities could help you do for free?

I'm afraid I don't know enough about the subject, but can I please suggest you post a summary of this - and the company you've used on the Debt-Free Wannabe board, as the people there will be able to give you some really good opinions based on experience. http://forums.moneysavingexpert.com/forumdisplay.html?f=76

I suggest you call the post something like "IVA - using Ernst & Baines" as that will grab the attention of those who know what to do!

I hope this helps; you may be really happy with what you've agreed and that's fine! I'd just hate to see you pay out money for stuff you might not be needing to. I think it would be useful to ask on the DFW board first and get their opinions and experience before you make up your mind, that's all.

KiKi