Debt Restructuring?

Batman4

Hi,
I am new to this forum and am after some advise. i have today spoken to someone from harrington brook whi have given me some 'advice' but im concerned. They have said that an IVA doesnt suit my needs which is fine but have said that they will put me on a debt 'plan' where they will ask my creditors to freeze interest and accept a payment from me each month to clear my debts. They have said i should be debt free in four and a half years, i currently owe c.£18K.
It all sounded fine until the part where they told me to cancel my direct debits to the creditors involved while they sort out the 'plan'. further alarm bells rang when they said that the first two months payments of £467.75 per month would go to them as their fee, then all subsequent payments would clear the debt.
Have i done the right thing?! i'm really concerned and am not at all comfortable with it, though i have to say i was comepletely 'sold' when on the phone to them...Has anyone else had any experience of this?! Please help.

gillypkk

i would advise going to one of the debt charities - they dont charge and im sure they will help you set everything up free.

dont pay if you dont have to eh?

mel12

It sounds like a debt management plan to me - there is a guide to what they involve here

However, one of the debt charities will do the same thing for you for free - theres a list of them in this thread: https://forums.moneysavingexpert.com/discussion/2077631

Doing a debt management plan itself isn't necessarily a bad option, but its a waste of money paying the company for it when that money could be going to your debts.

debtinfo

DMP's are good for some people (depends on your own individual circumstances) but rareley are they good if being done by a company that charges that much up front, As the others said speak to one of the debt charities, theye are free and impartial.

Out of interest what reason did they give for the IVA being unsuitable

Batman4

Thanks all, so glad i came on here as i will speak to them in the morning and hopefully halt any action - ive not signed anything so i should be ok i believe?!

debtinfo - they said and IVA wasnt suitable because i could basically afford my debt - i meet all of my payments but it leaves me with precious little else. They said because of this they advised against going down the insolvency route which an IVA is..?

As for the Debt Management Plan, It just really concerns me being told to cancel DD's and S/O's so that things can be organised. It just goes against my natural instinct!

Ineedaname

Definitely speak to one of the free debt advice agencies listed in the first post in this thread. I wouldn't even bother calling the fee charging company back, unless you want to make one call to tell them where they can stick their fees... they will be unable to talk to any of your creditors if you haven't signed anything giving them permission to do so.

Batman4

they said that theyd send the paperwork to sign but that theyd get started straight away on calling my creditors. it was only after i put the phone down that i had that sinking feeling, tried to call them back but they'd closed for the evening - i want to call just to make sure that they dont do anything - like an idiot i didnt research anything - i just got sold to! I presume that like with most things there will be a 14 day cooling off period?!

Thanks everyone for the advise!

Ineedaname

Yep, 14 day cooling off and your creditors won't talk to them without a signed consent. Call them in the morning and tell them you've reconsidered and are going to take some FREE advice instead.

Batman4

Hi,
I'm a little worried because I called harrington Brooks today to cancel the DMP and i haven't been able to contact the person that i need to to cancel the arrangeent. I have called four times today now and each time i am told that i need to speak to a specific person that is more elusive that Lord Mountbatten!!
I have explained each time i have called that i want to cancel and each time i am told that they have emailed the person who will call me back. still waiting. the last call i made (just) the girl i spoke with said she emailed the guy i need to speak to to arrange a call back and he emailed back straightaway saying thanks! i asked if he was there then why i couldnt be put through but she made some story up about him only being able to make outgoing calls!!

If i cannot get to speak to this guy will the plan be put into action even though i have signed nothing, although i verbally agreed in principle on the phone yesterday?!

I'm concerned - any advise is appreciated.
Cheers.

Ineedaname

As I said above, none of your creditors will speak to a third party without signed permission from yourself, so don't worry. This guy is just playing you at the moment because he doesn't want to lose your 'business'.

Ring up one of the free debt advice charities tomorrow and get the balling rolling with them.