full & final settlement with MONEYEXPERT???

Miss_A__2-2

Hi. Im new to this and you all seem very helpful so i thought i would ask for advice.

I am finding it had to pay my credit card as the interest is now £93 so if i pay £100 off this month, in fact im only paying £7!!! I also pay £133 on a loan each month.

I dont have any money saved to do full and final settlements but i have had advice of 2 companies.

MONEYEXPERT said if i pay what i could afford so £160 each month for 3 years 2 months it worked out at, They would pay £5 to each company, Halifax and tesco loan. The rest of the money, £150 would go into an account. When it builds up to £1000 they start to offer settlements to the companies. After the £years and 2 months i would have built up £7000 and they said it would then be cleared.
I asked how they benifit from this, They take a % the first 3 payments. I asked 'what if the companies dont settle? They said the most anyone has had to pay is 57% which is a very worst synario,

CCCS is a charity company who the bank adviced me to talk to. This is a debt management plan and i will be paying the money back but over longer time. They worked out my money and i would be paying £170 between the two.

Anyone done anything like this with companies like moneyexpert or cccs?

Please can anyone give advice?

Thanks

gonzo127

right well the simple thing is which ever way you go it WILL affect your credit rating for the next 6 years!

my personal pereference is to go with the CCCS, mainly because they are a debt charity and work out the best solution for you, and not what will make them the most profit.

i am also very concerned about the format moneyexpert is offering you, for one NO ONE can garentee a creditor will do anything! its just a simple thought that only the creditor can decide what they want to accept, and full and final settlements a creditor can legally demand 100% payment and there is nothing you (or anyone else) can do about this.

also imagine this situation, you pay £160 a month to this company for the next 3 years, you get excited that within the next 2 months you will be debt free, and then wham, company goes bankrupt! all your money would be lost!

i am sorry if this sounds cynical, however too many people who have come on these boards have been tempted by the 'get debt free quickly' offers companies of this type offer, and then have been burnt and ended up in a worst situation than they started in

just try and look at it from the creditors point of view, in affect what moneyexpert would be doing is paying token payments to your creditors and then banking £150 a month of your money themselves (also earning the interest for themselves) now from a creditors point of view why should another company be making money on a debt that you owe them when they would be losing out?

also if you are making token payments there is nothing stopping a creditor taking you to court to get a CCJ awarded, which would then screw up this deal since it would force you to pay that credit a set amount of money each month

sorry thats a bit of a rant, its just i hate this type of company that prey's on someones desperation with offers of wonderful solutions which actually have a very high chance of failing! the debt charities such as the CCCS, CAB, national debt line, christians against poverty and Payplan all work to do what it best for you and it doesnt cost you anything, so every bit of your money goes to paying of your debt and not the companies profit margins

quick edit, just done a google of moneyexpert and it hasnt come up with any company which offers 'debt advice' this (in my mind) seems a bit dodgy and looks as if this company is using the good names of this site and moneyexpert.com which is a price comparison website

mazza25

moneyexpert look like a fee paying company. I would (personally) not touch them with a barge pole. I don't understand why you would pay them £160 a month but they would only put £5 to your debt. Surely that would just allow them to earn interest off the money you send them, plus take a fee?

CCCS are very reputable and would be the one I would advise.

donatello_2

The clue is in the name of the company 'Expert' - I think not! The recent replies are talking sense, why would someone charge you when you're already having difficulties with debt. I got sucked into a fee paying debt management plan a few years ago and have regretted it ever since. There are some companies that want to cash in on vulnerable people and its wrong.
I suggest speaking to one of the 'FREE debt management companies. They will most probably get your interest frozen, where as I'm not sure about that with your other option.
Payplan - I'm with these, but they do try and sell you insurance for car house etc. but there is no obligation.
CCCS - you're already onto.
The national Debt line are always there for advice too, also there are many many supportive people on here.

Tixy

Hi Miss A and welcome

Please have a read of this post https://forums.moneysavingexpert.com/discussion/2077631

What moneyextra are suggesting is highly unethical and I doubt very much that any creditor would fall for such a ploy. A creditor will only ever agree to freeze interest if they believe they are receiving a fair share of all you can afford each month (even then they don't have to freeze interest but many will). However if they see your income & expenditure and see you are saving £150 per month (less fees) there is not a chance they will accept your (or moneyextras) proposal.

DEVONLIFE_2

Hi Miss_A I agree with the above. CCCS is the best one to go with. On this forum you can send private messages to the CCCS team. You also get a lot of support and direction from people who have extensive experience and insight. The support you will get is fantastic. Best of luck.. DL.

DarkConvict

Just add in it would appear that moneyexpert are trying to feed of the great name of moneysavingexpert, this site and forum, it has been done before, CCS also a fee company feed of CCCS the charity, basically you put in the wrong search terms and they come up instead....

I urgently advice you ring NDL, CCCS, PayPlan, CAB, CAP and get a free dmp sorted asap!