DFH Financial solutions

spikadahypa

I had a call from these guys claiming that i can lower my monthly outgoing of debt from 400 to 127 a month

it will cost a 70 admin fee, and then the first 2 months payments will go to them, at which time all my debts will be frozen, they will take control, stop the interest and begin to pay

what do people know about these guys? from what i have read is only bad things because people did't release it will cost the 2 first months payments too.. so 127 for 2 months and the 70 admin fee, 330 pound to save 270 a week seems pretty good to me?

what do you guys think of this company? i'm about to sign this paper :-/

thanks for feedback

bottleofred

Hi and welcome to the forum,

You should never EVER sign up with a debt management company who charge you for the service, as you can get the same service totally free through the consumer credit counselling service. If you go with the cccs all the money goes towards your debts and I don't believe they are any worse than fee charging companies. I went with a fee charging company initially before seeing sense and switching to the cccs. They will promise you many things, but of course they're going to do that to get your cash. My advice is to go with the cccs but only you can decide.

Good luck

Red

spikadahypa

the cccs will help me? i have 11k debt unsecured and only earn 800 a month, i pay half my wages a month on bills.

bottleofred

They have a website. Have a look on it. As long as you are honest with them about all your debts and settle into a regular monthly payment plan with your creditors, then yes they should help you. I self managed my own debt management plan with the help of the cccs and although there is an initial flurry of phone calls and letters with all kinds of threats, things settled down and I made regular monthly payments. Going with a non fee charging organisation makes perfect sense to me as all the money goes off your debts.

Good luck

Red

spikadahypa

how damaging is it to my credit rating? would i still have possibility of mortgage in future? whats the negatives?

seems pretty easy to me, i'v wracked up 11k debt now i can get out of it this easily??? can't be true

bottleofred

You are almost certain to get a default on each credit account when you sign up to a dmp. This will prevent you from getting almost any type of credit for up to 6 years. A default drops off your credit file 6 years after it was applied to your credit file, so that is something to consider. A fee charging company won't do any better though, as the minute you start paying less than the minimum monthly payment you are effectively in default. You can't have it both ways though, so either you struggle on and potentially end up in more debt (the way I did) or you bite the bullet and look at the longer term.

Good luck whatever you decide

Red

spikadahypa

bottleofred wrote: »

You are almost certain to get a default on each credit account when you sign up to a dmp. This will prevent you from getting almost any type of credit for up to 6 years. A default drops off your credit file 6 years after it was applied to your credit file, so that is something to consider. A fee charging company won't do any better though, as the minute you start paying less than the minimum monthly payment you are effectively in default. You can't have it both ways though, so either you struggle on and potentially end up in more debt (the way I did) or you bite the bullet and look at the longer term.

Good luck whatever you decide

Red

i looked at cccs, filled in their forms, but they won't do anything because i am capable to live on 250 a month after credit and bills, food has been paid for

the problem is i don't think i can stick to such strict living, i think its going to take a lot of management and willpower to work 40 hours a week, and live off 65 pound a week or so, plus i am 25 and don't drive and have never been abroad or holiday with anybody else other then my parents when i was younger, i don't want to spend the next 6 years or more struggling to pay off this debt

is DFH a scam? or just a bit expensive? it seems like they do the job, it just costs a bit to begin with

whats the negatives?

thanks for support

bottleofred

I have no knowledge of DFH, but would remind you that if it sounds too good to be true, then it usually is. As I said earlier though, you can't have it both ways and you need to decide what to do as you will be living with the consequences.

spikadahypa

BoGoF wrote: »

Seriously, why would you want to pay them £70 plus 2 months debt payments that could be goind to reducing your debt.

They cannot say that interest will be frozen, that's a lie.

In all honesty only a mug would sign up with these type of companies

if you read my post above, it kind of explains it.

if i have to live of my current 250 pounds a month for the next 5 years, my whole quality of life is going to be destroyed, i wont ever learn to drive, and would of never been on holiday, plus i'll probaly never hold a relationship down if i have no money to ever do anything.

if i paid the damn 300 quid this debt company wants, then i'll have at least 600 quid a month to live off...

bottleofred

spikadahypa wrote: »

if you read my post above, it kind of explains it.

if i have to live of my current 250 pounds a month for the next 5 years, my whole quality of life is going to be destroyed, i wont ever learn to drive, and would of never been on holiday, plus i'll probaly never hold a relationship down if i have no money to ever do anything.

if i paid the damn 300 quid this debt company wants, then i'll have at least 600 quid a month to live off...

You ask for advice but then choose not to listen, which is entirely your choice. You can't have it both ways though and I wish you luck in whatever you decide to do, as I've a feeling you're going to need it.

LovelyLeeds

spikadahypa wrote: »

I had a call from these guys claiming that i can lower my monthly outgoing of debt from 400 to 127 a month

it will cost a 70 admin fee, and then the first 2 months payments will go to them, at which time all my debts will be frozen, they will take control, stop the interest and begin to pay

How long is the £127 a month loan for?
You are not getting a bargain here, you are getting a recipe for more debt. Definitely don't sign until you've done some more research on this board. Consolidation is rarely good financial management, just put First Plus, for an example, into the search engine on this board - you'll soon realise what you're potentially signing up to.