First Step To Debt Free

naff123

Hello all. Finally 2012 is the start to becoming debt free we have accumulated 4000 in debt whilst I was unemployed. I went to a Debt Management company and they have calculated with their fee's included I will be debt free completely in 12 months I have just cleared my Biggest balance my credit card of 1300 pounds.

SURE I pay a fee but I paid the fee's once my debt management was approved so I don't mind this at all its not one of them take the payments and go for good like some scam artists do.

But glad to see my credit rating improving and my debt shrinking

rising_from_the_ashes

Naff - well done on taking steps to sort out your debt but please look into moving to one of the debt charities ... the provide exactly the same service but it's free - that money would clear your debts even quicker.

naff123

It is a minimal fee im paying each month toward my dmp something simple like £38 per month and at the end of the year if i have saved up enough funds i can write off the debts to the amount of 30% less than the balance

rising_from_the_ashes

Still over £450 .... I'd much rather this went to my debts than to line someone's pockets for doing something that I can get free elsewhere - sorry.

piglet39

naff123 wrote: »

i can write off the debts to the amount of 30% less than the balance

Is this what the DMP provider told you? AFAIK there is no guarantee that any lender will offer F&F settlements. There isn't anything that a paid for DMP provider can do that a free one can't and you'd have another £38.00 to throw at the debts.

Piglet

naff123

yes a valid point you do make but am not sure if this would screw up my current arrangements i.e. would I not be left in limbo between switching companies?

Edit: yes the DMP said that they can offer that service at the end of 12 months they can do that no problem

piglet39

OMG -:rotfl: Rising - I'm not stalking you.... x

rising_from_the_ashes

naff123 wrote: »

yes a valid point you do make but am not sure if this would screw up my current arrangements i.e. would I not be left in limbo between switching companies?

There shouldn't be any problems switching and I know of several people on here who have done so without problem - give one of the charities a call (numbers in the sticky thread at the top) and see what they say .... you've nothing to lose!:D

piglet39 wrote: »

OMG -:rotfl: Rising - I'm not stalking you.... x

:eek::rotfl:

naff123

Just an update I had a chat with one of the DMP charities I've booked an appointment to speak to an advisor on Friday about everything see what I can get sorted with them

rising_from_the_ashes

Fantastic Naff! Hope you can get something sorted out which will save you a bit of cash - let us know how it goes!

naff123

Indeed I will the only thing to stop me really is my current DMP still have my paperwork from collection companies with my acc numbers on it e.t.c. so not sure what i shall do for that