Debt Management Companies

SingleWhiteFemale

Hi all

I was just wondering based on people's experiences, what do Debt Management companies usually charge for their services? I have spoken to Money Managers UK today, and they have advised they normally charge £10.00 per creditor. Which, for me, would be £30.00 per month.

As I thinking initially that I would be able to pay £60.00 per month based on my first calculations, does this seem like an awfully large amount to pay?

Finally, has anyone used any Debt Management companies and would recommend?

Thank you

winner12

Hi be very careful thats £10 to each creditor you could be paying off your debts each month instead of to them

NorthernLas

Please do not consider paying anyone to do your debt management for you. There are charities that will help you for free or your can do it yourself. Do you really want to spend £360 a year for something you can get free??

Hannah_10

Don't do it.

They can't do anything for you that you can't do for yourself, and I can't tell you how many posts I have read that have said "I have just found out the paid debt management company I was using have taken my money for the last 6 months and not forwarded it to my creditors, so now I've got default notices and court threats".

Again debt management companies are another end of the market that capitalise on scare. In this instance they do it vicariously, you're scared of the DCA and so they offer to rescue you (for a fee). From what you said on your other thread you've only got about £100 available a month to make repayments in the first place, giving 30% to a company that can't do anything special for you is a panic reaction, not a sound way forward. How much will that work out to over the lifetime of the debt? I'll tell you- instead of being out of debt in 36 months, you will need 53 months. In that time you will have paid £1590 to the debt management company... Who can't do anything for you that you can't do for yourself... Who might get you into more trouble by not doing thier job properly... Who are profitting from fear.

Slow down, one thing at a time, lets be seeing that SOA.

pepe2008

Dont pay ANYONE!

www.nationaldebtline.co.uk even have a scheme where you can self-manage with their help .

....and theres the Citizens Advice Bureau or CCCS e.g

Spud63

Ditto - DON'T PAY ANYONE, DEBT MANAGEMENT COMPANIES ARE A TOTAL RIP OFF !

bottleofred

Hi Single White Female,

As Hannah has said, if you post your SOA we can make suggestions and provide advice. If you are determined to go with a debt management plan though, consider the Consumer Credit Counselling Service or Debtplan as they are totally free and all the money will go to the debt. I paid £157 per month for 3 months and the idiots had not paid a penny over for me. They are thieves! AVOID them!!

Ames

Also, put yourself in the shoes of your creditors. Which would you be more likely to accept? They're not going to be happy that you can't afford to pay them thre full amount but can scrape together fees for a company when there are free ones to go to.

Mrs_Ryan

Wont Payplan/CCCS not take you on if your debt is under a certain level?

gill2000ste

can i just say, i think cccs is probably the best, i was with them till in march i changed to the money group but the money ive been paying them which was less then what i was paying cccs has gone nowhere, the people i owe money to have had no offers or recieved any payments...

so im nearly £300 worse off with no one paid but have an appointment with cccs today, who are probably the most helpful people i have ever dealt with....god im an idiot. x

immoral_angeluk

Paying for debt management is a complete waste of money.
If you want someone to give advice and deal with your payments for you, but are happy to do it over the phone, contact CCCS or National Debtline.
If you want face to face advice and help to negotiate with your creditors, but are happy to pay yourself, go to CAB.