3rd party debt management companies

hehehe

Hello all! I need help.

Basically i took a loan with halifax. I haven't even started repaying it then my circumstances changed and now i can't afford £200/month, so i offered them to pay £40/month. I have sent them my budget/expenditure form. But they keep pressuring me to seek advice with 3rd party debt companies. Like payplan and consumer credit councelling service. I have checked their websites and for me its seems like a kind of scam.shiny websites about nothing. I mean i can manage my debts myself, i don't need 3rd party's help.i am happy to comunicate and deal with bank myself.

Also i have read some reviews about these companies. And people claim having all sorts of problems with them.

So my question would be if i really need 3rd party's help (if yes -why?) and how should i explain bank that i don't wanna get involved with that. I can't be forced to use them, right?

Thank you!

CLAPTON

CCCS, Payplan and CAB are free debt help agencies which charge you nothing
Many creditors prefer to deal with these as they feel that thye will be 'fair' and treat each creditor proportionately.

You don't have to deal through them; that up to you especially if you only have one debt.

fatbelly

Well, firstly the two companies you mention are not a scam. Both are fee-free providers. Although some users will have issues with either of them, there are many posters on the debt-free wannabee board who have received tremendous help from both.

CCCS appears in Martin's list of 'the right people to go to' here

But if you're hapy to do this yourself, then that's fine too.

You may find the National Debtline factsheets helpful

hehehe

thanks for your replies! i didn't meant that these companies are literally scam. i was just thinking how they making their money.i will send a letter to bank and will keep you informed. thanks again!

Apples2

hehehe wrote: »

I mean i can manage my debts myself, i don't need 3rd party's help.!

But you have taken a loan out and not made a single payment!!

The scam sounds like it's coming from you. If your circumstances changed so quickly, why not get shot of whatever you borrowed the money for and repay the loan off??

hehehe

you know if i have got debt it doesn't mean i can not manage it

RobertoMoir

hehehe wrote: »

Hello all! I need help.

Basically i took a loan with halifax. I haven't even started repaying it then my circumstances changed and now i can't afford £200/month, so i offered them to pay £40/month. I have sent them my budget/expenditure form. But they keep pressuring me to seek advice with 3rd party debt companies. Like payplan and consumer credit councelling service. I have checked their websites and for me its seems like a kind of scam.shiny websites about nothing. I mean i can manage my debts myself, i don't need 3rd party's help.i am happy to comunicate and deal with bank myself.

Also i have read some reviews about these companies. And people claim having all sorts of problems with them.

So my question would be if i really need 3rd party's help (if yes -why?) and how should i explain bank that i don't wanna get involved with that. I can't be forced to use them, right?

Thank you!

If you can manage your debt yourself then why are you having trouble making the repayments? That's a rhetorical question, but something you should consider - the two things don't really sit together and that is probably why the banks are asking you to consider getting help.

Some debt counselling services do charge you for their help, some do not. Clearly if you use one at all, it should be one that doesn't charge. I believe the CCCS is funded by the lending institutions themselves.

You can't be forced to use one of these services, but lenders may look upon your situation more sympathetically if you do.