hello everyone and please advice

forest24

Hello everyone
I've just hoined this fantastic forum and I hope to get my finances sorted

I'm in debt at the moment and I've just spoken to EuroDebt advisor yesterday. Let me give you some fact and please tell me what you think will be the best option for me.

I've got about 7k debt (two overdrafts maxed out - 2.6k each and two cc - 1.1k and 500 - all maxed out)
At the moment I pay in interest and charges about £150 a month
I've spoken to an advisor and they prommised me to stop bank charges and I'll be out of debt in up to 3 years.
The plan is
1. Close all accounts down
2. Open new trust account with debit card
3. They will take care of all my debts - initial cost will be £560 paid in three instalments and then firther £137/month. £37 will cover their cost and remaining £100 towards the debt. I know that is bit pricey but I pay more now just to cover minimum cc payments and interest.
They've said that when I've paid up to £4k we can write all rest off.

What do you think?

Thanks for any help

fermi

forest24 wrote: »

I've spoken to an advisor and they prommised me to stop bank charges and I'll be out of debt in up to 3 years.

If they have promised that, then they are telling you porky pies.

No debt management company can promise that creditors will stop interest or charges on a DMP.

Or that you will be out of debt in a certain time.

forest24 wrote: »

They've said that when I've paid up to £4k we can write all rest off.

Again, they can't promise that.

So more fibs.

forest24 wrote: »

What do you think?

I think paying those charges would be money down the drain.

Why pay that, when the money could be paying off the debts and getting you out of debt sooner?

The advisor you spoke to is obviously fibbing or distorting the truth in order to make their "product" sound much better than it is.

And don't mistake that it is a "product" they are selling. Their advice won't be based on what is best for you. It will be based on what they think will get them the most profit/commission out of you.

fermi

Please read the info and linked article in this thread:

---> IMPORTANT - Where to seek professional impartial advice about your debts.

If you are going to take professional advice regarding you debts, then make sure it is with somewhere mentioned in the above article rather than somewhere that are only thinking about how much "profit" the can make from you.

A DMP will wreck your credit rating, so it's not to be embarked on without independent advice that it really is the best option.

You also might consider posting a full SOA (statement of affairs) on this board.

See: Help for First Time Posters & SOA Calculator

The DFW's here are very good at seeing what your options are and how you might be able to switch, cut down, pay things off in a better way, etc....

Mr_Max

As has been said, EFS cannot guarantee to write the debts off. They are very good at getting full & final settlements agreed, but they cannot guarantee you anything.

allydowd

forest24 wrote: »

Hello everyone

3. They will take care of all my debts - initial cost will be £560 paid in three instalments and then firther £137/month. £37 will cover their cost and remaining £100 towards the debt.

That means you'll be giving this company:

£560+
(36 X £37)
=£1892 IF they manage to end this in three years.

Are you really sure you want to pay that much when these forums can help you out for FREE.

Learning2Budget

Ring the CCCS and get some advice from them, after talking to some of the knowledgable peeps on here. It's a free service from them, but not a quick fix.

summerstreetallotments

Please please do not agree to anything with this company when you can have a realistic and free deal from the C.A.B. or C.C.C.S...their promises are empty...they just want to take your money..please think again...