Who do I go with?

ChrisR36

Hi folks, I'm new here and hoping that I can get some advice from any of you good people.

I've been in debt for years, not a huge debt by comparison, but enough, and I've burying my head in the sand for too long, and just last week I decided that it has to stop here.

Last week I Googled 'bankruptcy' and clicked on the first link to open a short questionnaire to see if I was eligible to go bankrupt. The results showed that there were alternative options, and within 10 minutes, I received a call from a debt management company called Harrington Brooks. I have to say that the person I spoke to was extremely helpful, and he told me that my best option was a Debt Management Plan. It was all very sudden, I hadn't had any time to prepare or research, but within 20 minutes I had signed up to this plan which added an extra £3000 to my debt in fees. To summarize, I will be paying £150 for the next 6 and half years to pay off £8700 worth of debt, plus an additional £3000 in fees.

After setting up the DMP with Harrington Brooks, I did a bit of Googling and discovered that there were alternative companies that offer a service for free, notably PayPlan, which I've no doubt you've all heard of. Obviously my goal is to pay off my debt as soon as possible, and if I can go with a company where 100% of my payment is going towards my debt instead of 15% of it going on fees, then I'm obviously going to go with the free company.

I called PayPlan and signed up for an IVA, which means I would pay £150 per month for 5 years (18 months quicker than Harrington Brooks) I have a 14 day cooling off period with Harrington Brooks, and the intention was to cancel the original DMP and go with PayPlan.

I sent an email to Harrington Brooks informing them that I no longer wanted to go ahead with their DMP, and that I had found a free service elsewhere. The representative who was dealing with my case has just called me and told me that PayPlan are free for a reason, and that you 'get what you pay for', and that Harrington Brooks are providing a service that you don't get with PayPlan, hence the fees.

He's left me for 24 hours to think things over, and he's going to call me again tomorrow. He's not pressuring me, he's told me the final decision is mine, but he's strongly advising me not to go ahead with PayPlan. Now I'm not stupid, I know that these companies put themselves first. I don't know what to do. I asked him - If PayPlan offer a free service, then what is in this for them? and he said 'Exactly .... this is what you need to ask yourself, think about it, and I'll get back to you tomorrow' - he's left me with the feeling that he knows something that I don't, but he's not allowed to say anything.

Sorry if I've rambled on a bit, but I wanted to ask what any of you think. Do I stick with Harrington Brooks, who take a percentage of my payments in fees? Or do I go with Payplan, who this guy advises me will not give me the same level of service? Are any of these companies putting my interest first, or their own? I am aware that with some of these free companies, you have to do some of the work yourself, but I'm not the kind of person who can call the creditors and haggle payments with them over the phone. I would rather pay someone to deal with all of that on my behalf, do Payplan offer that kind of service? If it's no, then I think I have my answer.

Thanks for reading if you got this far.

Chris

mummybearx

I am by no means an expert on debt, but I do know one thing.

Never, ever EVER pay money to clear debt.

You have come to the right place for advice. Firstly call these people back and cancel your plan. Do not come off the phone until it is cancelled (and put in writing that it is cancelled).

Post a statement of affairs on here, there is a sticky thread at the top with a link.

People on here will help for free!

Time_to_face_the_music

Harrington Brooks are spinning you a line, please do not fall for it. They just want their pound of flesh in the form of your fees :mad:

Did Payplan offer you a DMP or was an IVA the only option? If you want a third opinion, try the CCCS (also free) debt remedy

https://debtremedy.cccs.co.uk/start.aspx

Many people here use Payplan and are very happy. An equal number use CCCS and are also happy. I swear to you that Harrington Brooks can not offer you anything extra except to take your money for what you can get for free. Don't do it.

LittleMissGiggles123

Everybody on here would either recommend Payplan or CCCS, I think there is another one as well but can't think of the name. There will be more knowledgeable people along shortly.

But I agree with the first reply, why would you pay somebody to help you get out of debt?! As you said, that 15% fee could go towards your actual debt instead. What do they actually do to earn 15%? Make a few phone calls & write a few letters, which Payplan & CCCS are offering to do for free.

Cancel it & go with a free service.

x

Time_to_face_the_music

Sorry, should have also told you to read the excellent advice on this thread

https://forums.moneysavingexpert.com/discussion/2077631

fatbelly

Whatever the best strategy is we know one thing - it won't be a debt management plan with a fee charger!

Payplan are well respected because they do fee-free dmps. However, if they set up an IVA, they act as an Insolvency Practitioner and do charge.

An IVA paying £150 x 60 months to pay off £8700 of debt sounds like a sledgehammer to crack a nut.

How much are Payplan taking on this deal?

I agree with zepsgal. Commit to nothing until you understand the options a bit better. And post a SOA in the meantime

Calculator here. Format for mse and delete any links.

ellesbellesxxx

Definitely do not go with a fee paying company! Pay plan can negotiate with creditors on your behalf - maybe you need to check which option is best for you though: DMP vs IVA...

ChrisR36

Wow! Thanks for all of these replies in such a short time. You've all been very helpful, and the advice seems to be unanimous - to stick with PayPlan!

Yes, it does seem incredible to me that a company who are there to supposedly help me clear my debt, are only dropping me even deeper into debt! My only concern is that the impression I got with Payplan,is that they offer plenty of helpful advice, but it's ME that has to do the work i.e., calling the creditors, negotiating the reduced payments etc., I cannot do this. Unfortunately, I'm the type of person who will shy away and agree to everything, just to get rid of them. If anyone can confirm that Payplan do all of the phone calling for me, then I think my mind is made up.

One thing I did notice, the guy from Harrington Brooks, although he was very efficient and helpful, I found him slightly intimidating and 'pushy', whereas the people at Payplan, I felt very relaxed and open with them. They took some figures and came up with 3 options - bankruptcy, DMP or an IVA. They explained each option to me, and it was my decision to go with the IVA. They said with an IVA, the creditors can't contact me, that's it's less 'informal' than a DMP, and slightly less time to pay the debt off.

I'm in a bit of a mess really, Harrington Brooks have begun proceeding with the DMP by telling me to empty my bank account (including overdraft) and open a new account with the money. I'm stalling on that while I try to decide which company to go with. In the meantime, I have direct debits with my old bank account that are approaching, with no money in there to cover them.

R_P_W

I'm no expert but every single person who has posted has said exactly the same thing - DO NOT go with the company that is charging you the fee. There are lots of people on here who know what they are talking about and it would do you good to listen.

This guy will tell you anything you want to hear to get your fee! He will promise you the world and tell you everything will be ok. Do you honestly believe it?!

I don't know if you have to negotiate with creditors yourself with the free service, but even if you do what is so bad about that?

So you have no money in your bank to cover your bills? As other have suggested why dont you post a SOA

poppy52

If you go with Payplan or CCCS you don't need to negotiate with your creditors yourself - they do this for you. They do everything a fee paying company does but charge you nothing.

Lensman_2

Stop stalling. Whichever company you go with (!!!!!! - don't pay for a service you can get for free - and don't believe the salesman who is after his bonus), there are things you need to do.

Open a parachute account. Coop is good and unlikely to be connected to your debts.

Get your wages paid in to it.

Cancel the DDs on your old account.

These things you must do. Now. You will feel better for doing them too.

You can stall on the other stuff but you will sleep walk in to paying for something that you could get done for free. You might already have.