Debt Management...

The_Economist

Has any one used a Debt Management company that does the IVA's. My relation is in £25,000 debt and is looking for help from one of these companys. Has anyone had any experience with these type of companys.

Biffa

You'd be better off contacting CCCS or Payplan first. Debt management companies will charge you a monthly fee, and your first payment will go entirely to the DMC and NOT towards any of your debts.

CCCS and Payplan are basically charities that don't charge any fees whatsoever.

kathfisch

If your relation is advised that an IVA is the best solution to their debt problem, there will be a charge for this. Even through Payplan etc, there is a charge for the insolvency practitioner (whereas a Debt Management Plan is fee free!).

Your relation needs to get together a statement of affairs... detailing all debts/interest rates/payments etc and details of incomings/outgoings - what all money is spent on! We can take a look at that and give some suggestions, and they will need this info to go to an advice organisation anyway.

The best thing to do is to get help from a free charity such as Payplan, Consumer Credit Counselling Service or Citizens Advice Bureau. They can give the right advice, not persuade the debtor into whichever solution makes the most money for the advice-giver!! They will advise impartially about the pros/cons of the various routes open to your relation who is in debt.

The_Economist

Biffa thanks for your reply. I will tell them that there is other ways to try first before going to a DMC. Thanks for the heads up.

Thanks kathfisch for your reply. I'm not sure if going to a DMC is the right thing to do. I will put your and Biffa suggestions forward. Hopefully this will get them back on the right track. Many many thanks both of you for the help.