Debt Management Companies

eamonmci

A friend of mine has approximately £18000 of credit card, loan and overdraft debt. She is paying around £700 a month to maintain these and it is crippling her. She has spoken to a debt management company who have recommended that she should let them manage her debt so that she would pay approximately £180 a month for the next 11 years. They say this will affect her ability to get unsecured credit but will not impact on secured loans such as mortgages and car loans. Has anyone had any experience in this? If she goes with this it will help her current situation massively but is she not seeing the whole picture?

CLAPTON

It will trash her credit record and will impact on secured loans although may not make them impossible

without knowing her financial circumstances it's not possible to say what the best way forward is

however she should avoid the debt management companies that advertise on TV as they charges for thier services but she should approach the 'not for profit' ones like CCCS, Payplan, CAB

if she has access to the internet she should post up on the debt free wannabe board; masses of information and support on there