getting charged for a dmp

bluelewis

Have been in contact with a company called cleardebt about doing a dmp they seemed extremley helpful but they forgot to tell me the hidden set up fees of £1000 and then a 17.9 % monthly fee.
I thought this was normal until wife said she thought this was wrong,have found a recomended company called payplan with no costs.any advice anyone please.

Deep_In_Debt

Yep, try Payplan, CCCS or CAB who will not charge fees. Alternatively, you could do a dmp yourself. National Debtline website has some good template letters you can use. £1000 set up and 17.9% is a lot to pay for someone who is already in debt and that money could be used to clearing your debts making you debt free sooner.

Pop over onto the Debt Free Wannabee board for further info on dmps/

Good luck.

GeorgiaMB

I went to the CAB and they recommended me to Payplan as I had too much income to be eligible for their scheme. But I have to say... £1K set up fee??? That's taking advantage of someone in a desperate situation!! Don't go there!!

Also avoid Knightsbirdge Financial Consultants Ltd and William Goldberg Ltd - check out my post called "Help I've been defrauded" and you'll see why.

Charco_2

£1,000 is excessive.

Usually companies will charge a set-up fee of one month's contributions and put a cap on it.

I'm not a huge fan of DMP's but for smaller amounts of debts or for a short-term breather they do have their place in the array of debt solutions out there.

Everybody loves these "free" or "charity" companies but be aware that somebody has to pay for these services! I personally wouldn't send my dog to payplan but others do sing their praises.

Do be careful about who you go to though because DMPs are unregulated... a new cowboy sets up for a cheap buck every day. That's not to say there aren't decent companies out there too.

The most important thing in a DMP tho is to keep an eye on your interest and charges from your banks... keep puttin pressure on for charges to be frozen otherwise you'll be getting nowhere! Don't simply rely that whichever "charity" you go to will get your charges frozen - call me cynical but it's not in their interests to freeze your charges!