easier debt??

alex_leeds_2

Hi everyone, this is my first post!!!
I have around £12 of debt, on 2 credit cards, 1 loan and an overdraft. The other day I was trying to get a loan to consilidate they told me I couldn't coz of bad credit rating and I was transferred to this company...
http://www.easierdebt.co.uk/ Does anyone know about their credibility? Basically they told me they'd freeze the interest on my credit/cards and loans and I'd make them one payment a month (about two 3rds of what I'm currently paying out) they also said I could pay back lump sums if I wanted and it wouldn't affect me getting a mortgage as it is a secured loan but I wouldn't be able to get a credit card again (which I think is a good thing?!) or finance if I wanted to get a car. I am 25 and wanting to get a mortgage in next year or 2, and really don't want to mess up my chance of getting a mortgage... does anyone know anything about this company? It seems too good to be true?!!
Thanks
x

DawnW

welcome to MSE. Someone more knowledgeable will come along in a minute I am sure, but first instinct is that, if it sounds too good to be true, it usually is.

Emmzi

They look like they offer IVAs or debt consolidation loans.

IVA will probably kill your credit rating for a mortgage; may be problems with getting any form of credit for 5 or 6 years.

Consolidation will probably be at a higher interest rate so won't save you any cash over the longer term.

You can't get a secured loan unless you have an asset to secure it on eg a house.

Try the debt-free-wanabee board for more advice, they have some good informative 'sticky' threads.

alex_leeds_2

I was just wondering how free advice agencies get their money then?

Rafter

They are suggesting you get an IVA and effectively default on your current debts.

This will mess up your ability to get a standard mortgage for 6 years although you might be able to get a 'credit impaired' mortgage at a much higher interest rate.

This company will also be taking £000's in fees for setting the arrangement up for you.

Also if you can't keep up payments with them you will be declared bankrupt.

Strongly suggest you talk to cccs or payplan (who also provide IVAs but aren't a profit making company) before going any further.

R.

Rafter

alex_leeds wrote: »

I was just wondering how free advice agencies get their money then?

Alex,

Debt advice charities are primarily funded by the big banks ironically!

Think a bit of government money goes in there too - particularly to the likes of citizens advice.

It is better for the banks that consumers get the best advice from a non-profit making group, rather than end up losing out in an IVA because a commercial company has stepped in and takes '000s in fees - often to fund daytime TV campaigns.

R.

alex_leeds_2

Thanks everyone! I am now considering getting a debt management plan from one of the non-profit agencies you mentioned... do u think that will mean I won't be able to get a mortgage tho? But then I have to think whether I'd be able to get one anyway with £7k on credit cards and a £5k loan :undecided

Emmzi

yes, a DMP may well mess up your credit score, as you will in effect still be defaulting on original agreements.

£12k debt does not sound unfixable to me.. have you done a budget?

alex_leeds_2

Thanks, no I've not really done a budget, I don't have a regular income as I work freelance so some weeks I may only work 2 days or none at all, plus I get weekly pay which I thought would make me manage my money better but it doesn't at all! I am going for interviews for full time jobs at the moment so I can start sorting things out...

masonick

i used to work for a v.large DM company a few years ago -
however most decent DM companies register with https://www.demsa.co.uk

it's a self regulatory body but generally means if you're not happy you have rights to cancel unlike a lot of cowboys out there and generally do what they say they will - be careful of over zealous sales people

there are pluses and minuses with DMP :
+short term fix maybe 6 - 12 month - creditors will listen
+interest reduced not always frozen (only Iceland always freeze) and pymnts likely to be accepted with 3 months of receipt of a realistic repayment proposal
+should only be used by people not wanting to borrow money of any sort - loans / mtgs /cars for a long time
- credit rating effected immediately
- will effect all credit ratings for 6 years
- we live a more and more credit rating society - going like USA

it seems easierdebt are demsa registered so proceed slowly and check out their terms and conditions and timescales for realistically helping you

PS - I am fed though with seeing CCCS as an "angel" company - they were funded by charitable funds from GE Capital - who have ALL the most expensive store cards in the UK - also they pick clients to place them onto IVA -
The only TRUE and INDEPENDENT debt advice is from the Citizens Advice Bureau - its just they are under resouced and under funded and can only give partial help

jonesMUFCforever

Have you considered looking for full time work as an employee rather than working freelance?