Debt Management Companies

greybear_3

We were stupidly with a company called spectrum to manage our debts for 5 years. We started with what we thought was an IVA but at the end of the 5 years it turned out to be a DMP and hardly anything had been paid off to our creditors. We terminated this agreement and looked into an IVA with another company called Byrom & Keeley. After making 4 payments to them (2 of which they keep) we are thinking that these too may be dodgy. We are thinking of (after almost 6 years) just contacting our creditors and trying to sort the problem ourselves with no help from any companies? Do you think this is a good idea or do these companies have more ability to make binding agreements with creditors than we do.

Thanks for any help anyone can give me

Clarie_2

Hi Greybear. Ditch the companies - they too are out to make money from you, and they can't do anything you can't do!
Get some advice from a charity such as CCCS or payplan - there's a list in a sticky post at the top of this forum. They can either do what the company was doing, but for free, or can advise you on how to go about doing it yourself.

Good luck.

Clarie

Tixy

Have you actually signed up to an IVA with the second company? If you have and its all officially gone ahead (creditors have agreed your IVA at the crditors meeting etc) then just cancelling it won't be easy. You would need to look at the paperwork etc as its likely most of the IVA companies fees will still be payable - which will likely be several thousand.

If you are not yet formally in the IVA I would suggest speaking to one of the debt advice charities for their advice. Even if you did decide to negotiate with your creditors yourself these charities will be able to help advise you on letters to send, tactics etc. Alternatively they could run your DMP for you or put your on to a reputable IVA co.
IMPORTANT - Where to seek professional impartial advice about your debts.

greybear_3

Thank you both very much for your advice. At present we have not finalised the IVA so will look into your suggestions.

Thanks again for your help x