Paying off all my debts, which way to go??

laurajane1982

Hi,

Im not sure if im in the correct place but hoping somebody could give me some advice?

I am currently in about £15500 in debt and currently with a ddebt management company, have been for about 2 years now. I have to say they have been fantastic and have really helped me.

I have just admitted all to by boyfriend as we are about to move in together and couldnt face keeping this big secret from him! He has been fantastic and when he sells his house he is going to take the £15500 i own out and pay off all my debts and get the extra in mortgage.

What i want to know is should i let my debt management company pay off all my debts or contact them and pay them myself. I have just had a conversation with them and they have said that on some accounts they may be able to get a reduction of up to 40 - 50%, of course they will take a fee for doing it. Will they be able to get a bigger reduction than me doing it on my own. I think they probably will be able to but wondered if anyone could give me any advice on it at all??

Many thanks

Laura

laurajane1982

Anyone????

RAS

Hi

You can do full and final settlements yourself. Just make sure they are full and final and in writing, even if the credit record is marked partial settlement. They are loads of threads on here.

NeverAgain_2

If the interest on the debts is frozen, you might as well put the £15,500 on deposit and carry on paying the debt management company.

Unless they or you can negotiate a good discount for settling.

Nothing to stop you paying off the ones that offer a discount and leaving the others to 'stew' for a bit longer.

They might offer a discount in a year, which they will not offer now.

In the meantime, you will have earned a little interest.

Tixy

I would do your own F&F offers and save yourself the fee that the DMP co will charge.
You can easily negotiate on your own and this factsheet from national debtline is likely to be useful to you - http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=24_full_and_final_settlement_offers

I'd be very surprised if the DMP co could get you a better deal than you can get yourself.