Which debt management company to use?

d4mo

I know this question has been asked a number of times but im starting to get a bit confused with all the companies out there.

Currently myself and my wife are in a DMP with Payplan and have been for about 4 years now, we have managed to pay off almost half of our debts in that time and I was starting to become less stressed about the whole debt thing.

However, recently we have had our first baby and had to reduce the amount we were paying to Payplan due to statutory meternity pay etc and I find it very depressing now looking at our final date as being sometime in 2023!! Part of the reason for the DMP in the first place is that we want to emigrate to Australia but would like to go over there without any debts to worry about, by 2023 both of us would be too old to get the visa.

In the past week I have received a number of calls from other debt management companies telling me that they can negotiate a reduction in the amount owed to the banks of up 70% and they also said that Payplan wont get it reduced as they get a commision from the creditors on total amount you are paying back?
How much of this is true? Am I better off looking at switching to a different company and potentially reducing our debt by up to 70% or stick with Payplan who we really havent had any problems with?

I'd really like to hear what anyones thoughts are on this.

thanks

billinghamfan

You will have to pay fees for the other companies and your end date will probably end up further away.

fatbelly

No-one can make a debt management plan end faster that one who passes ALL your payment to your creditors. So a fee-charging dmp is not going to be the answer.

Is there no other strategy that might work for you? Did Payplan suggest any other options?

Grumpelstiltskin

d4mo Like others have said don't touch any fee charging company with a bargepole.

Ask them to put their boasts in writing to you together with a full breakdown of all the fees they will charge you. I think you will find they won't do that.

Time_to_face_the_music

Hi d4mo

If your DFD is showing as so far off because of the current statutory maternity pay, how old is your baby now and does your wife intend to return to work? If so, would this enable you to return to your previous DMP payments? If this is the case, I would look at it as a short term blip in your plans and you will soon be back on course again.

In the meantime, as the little one grows, maybe you can sell a few things on ebay to add to your lowered income. Since we started our DMP, we have embarked on a massive decluttering project and it's amazed us how some of our crap is other people's treasure!

As to other debt management companies, apart from Payplan and CCCS, I wouldn't touch them with a bargepole. They are full of promises they can't possibly keep and charge for a service you are currently getting for free. Just don't do it.

Someone else will probably come along and ask you this but have you ever considered that a DMP may not be the best course for you and an IVA could be better and quicker? It wasn't for us, for a variety of reasons but can appreciate it can be a better solution in some cases.

Good luck

Depth_Charge

d4mo wrote: »

I know this question has been asked a number of times but im starting to get a bit confused with all the companies out there.

Currently myself and my wife are in a DMP with Payplan and have been for about 4 years now, we have managed to pay off almost half of our debts in that time and I was starting to become less stressed about the whole debt thing.

However, recently we have had our first baby and had to reduce the amount we were paying to Payplan due to statutory meternity pay etc and I find it very depressing now looking at our final date as being sometime in 2023!! Part of the reason for the DMP in the first place is that we want to emigrate to Australia but would like to go over there without any debts to worry about, by 2023 both of us would be too old to get the visa.

In the past week I have received a number of calls from other debt management companies telling me that they can negotiate a reduction in the amount owed to the banks of up 70% and they also said that Payplan wont get it reduced as they get a commision from the creditors on total amount you are paying back?
How much of this is true? Am I better off looking at switching to a different company and potentially reducing our debt by up to 70% or stick with Payplan who we really havent had any problems with?

I'd really like to hear what anyones thoughts are on this.

thanks

Hi

Did you ask these companies how they were going to reduce the amounts owed by 70% as it sounds suspiciously like people may be trying to sell you an IVA.

Sounds like touting for business to me, cold calling even, who knows?

Like another poster has put, did Payplan suggest any other options?

Cant really say anymore without knowing your circumstances.

Deep_In_Debt

You don't have to stay with Payplan. You can negotiate paying your debts yourself or making F&F's on your current debts if you can afford to.

Do not touch these sharks that call you with 100ft barge pole. They are only after your money and will take a hefty percentage from people who are already in debt.

I'd suggest you call Payplan and also give CCCS a call who are also free. National Debtline are worth calling too.

Just read your post again and it's common for these sharks to say that Payplan won't do anything for you. Payplan will do the same, if not more, than the sharks who are just looking to line their pockets, will.