Debt management

rickyhyde89

Has any one had any expierience with debt managemnt companies? Was the out come good or bad for you? Did they charge you a one off fee or do they handle your payments to your creditors for you and take a percentage? Did someone come and visit you in your home or was it all done over the phone and via post?

Thanks in advance.

bottleofred

Hi Ricky,

I originally signed up with a fee paying debt management company, who took the first 3 months payments and then charged a monthly fee. However, I changed to the consumer credit counselling service who are free and provide the same service. I found them to be excellent and would recommend them before ANY fee charging debt management company as all the money goes towards your debts. They may say they'll do better than free companies, but in my experience, they don't.

3431Anna

I did mine with Pay Plan it was all done over the phone and they don't charge anything:j

antonic

I`m with Payplan,

My sig says everything.

Deep_In_Debt

As the above have said, CCCS and Payplan can help. They don't charge fees so all your money goes to paying your debts.

I'm with CCCS and have been since Jan 2008 and they've been brilliant.

The fee charging companies are just after your money and nothing else. Don't touch them with 100ft barge pole. They are just out to line their pockets and not act in your interests.

MrsTinks

As I keep saying - explain to me why it's in a fee charging company's interest to get you debt free? So long as you are in debt you pay them a monthly fee... so infact it's in their financial interest to KEEP you in debt...

ferris_sulfate

I used Gregory Pennington. They calculated a monthly payment I could afford, to pay off various debts, which they consolidated. I think the first monthly payment they took as a fee. Not sure if they take a percentage on top. They handled all the different companies I owed money to and have been easy to deal with on the phone. I don't really know if that's good compared to other schemes. I'm not really very good with money and stuff.

Mort

Went through Payplan.
Outcome was good, very good.
No set up fee, charge or percentage, all free.
They handled payments to creditors.
No visits, couple of letters at start then all done over phone or by E-mail.

MrsTinks

Ferris if you are still with them please look at changing to one of the free debt charities in my signature... It will mean you get debt free quicker as YES they do charge you!

Alanbaker

ferris_sulfate wrote: »

I used Gregory Pennington. They calculated a monthly payment I could afford, to pay off various debts, which they consolidated. I think the first monthly payment they took as a fee. Not sure if they take a percentage on top. They handled all the different companies I owed money to and have been easy to deal with on the phone. I don't really know if that's good compared to other schemes. I'm not really very good with money and stuff.

I'm also with Gregory Pennington. I really haven't got a bad word to say about them! I foolishly got into a recent mess with payday loans whilst on a DMP ( I know, foolish and I shouldn't have done it - sometimes there is nowhere else to turn!). After struggling to juggle the payday loan rollover fees and my monthly debt management fee I got in touch with Gregory Pennington to ask what the possibility of adding new debt to my existing plan would be. They didn't give me a hard time (although I deserved it and was prepared for it) they asked me for a detailed updated SOA and details of my other debts. They are in the process of negotiating payment plans with my creditors.

A lot of people recommend payplan and CCCS - I tried to start a plan with payplan... They wouldn't entertain me as my debts amount to £3000. There minimum debt criteria is £5000. I believe CCCS are the same. That said! Payplan did offer to support me in assisting me with setting up my own debt management plan between myself and my creditors (no third party) which is an option I might consider in the future - I believe the negotiation with the creditors is the hardest part!

Yeah! Gregory Pennington charge you a monthly fee.. I'm not sure of the cost of mine.. Probably £30 a month out of my £150 monthly payment. To me, a small price to pay to keep the creditors happy (and more importantly "off my back")

Hope this helps. If your debt is above 5k I'd definately give one of the reputable free debt plans a go! That extra money that is paid to your dmp could be distributed amongst your creditors reducing the amount of time in your plan!

If you need any further advise, feel free to ask!

Best wishes