Debt problem Please Help

welsh_cake

I wonder if anyone can give me some advice on debt management.
I have around £13,000 of debt and am struggling to pay each month. I have been contacted by a debt management company and they say I could be debt free in 3 years if i pay £300 per month. This would affect my credit rating, but it is already battered and the guy i spoke to assured me that it would not get in the way of me getting a mortgage in the future. I was considering an IVA, but my debt isn't large enough for that so he advised me that I should do "debt management". Has anyone heard of this or done it themselves, as I don't want to get stung. I am so desperate to get out of debt.
Thanks

in_debt_again_but_dealing_with_it

Welcome welsh-cake you're in the right place, lots of good people and sound advice. Don't use a dmp company if they charge a fee, visit the CCCS or Payplan website where you will find lots of information and its all free!! CCCS do a calculator with no obligation which will give you an idea of your options. Keep posting.
IDA
xx

southernscouser

Hi welsh cake. Welcome to MSE and the DFW board. :beer:

First things first do not talk to that man again. Firstly he will be working for a fee charging company offering you a debt management plan that you can get for free.

Secondly his maths don't add up. £300 over 3 years is only £10,800. He can't make the rest disappear!

However the good news is that these guys are here to help. They are a registered charity who have your interests at heart. There are hundreds of people on here who have entered into DMP's with them and can't sing their praises high enough.

Snaggles

If you are considering a debt management plan (DMP), don't go to one of the companies that will charge you - Payplan & CCCS are both charitable organisations who will do this free, and are much nicer to deal with. It MAY get in the way of getting as mortgage though (if the guy you spoke to told you it wouldn't, I would definitely not trust that company - if you do the maths, £300 over 36 months would be £10800, which is less than you owe, and then there's the interest - so some of the debt would have to be written off, which will definitely affect your credit rating). Would you be happy to post your SOA and we could see if there are ways you could cut back, so you wont need to go down this route?

Edit - cross posted with SS but at least we both agreed on the maths hahaha!

welsh_cake

Thank you so much. The guy I spoke to said that he would reduce the rate i am paying drastically. Will the other people you have suggested do that too? I am being seriously ripped off with 29.9% rates and can't move them to other credit cards/loans because my credit is so bad.

welsh_cake

What is an SOA? Sorry I am completely in the dark when it comes to money.

Snaggles

Oh, sorry, my fault - an SOA is a statement of affairs - a list of income and outgoings basically. There is a template that Southern Scouser did - I'll just find the link for you.

HERE it is.

southernscouser

welsh_cake wrote: »

Thank you so much. The guy I spoke to said that he would reduce the rate i am paying drastically. Will the other people you have suggested do that too? I am being seriously ripped off with 29.9% rates and can't move them to other credit cards/loans because my credit is so bad.

Sadly no-one has the power to do that. Basically a DMP is just an agreement between yourself (via CCCS) and your creditors to pay them a certain amount each month. Hopefully after a while your creditors will realise that it's in their interest to stop the interest on your debts. It's not guranteed though. Some may reduce it or just stop it for a set time.

Either way the CCCS will be better than any other company. Say you agree to pay all your creditors £300 a month. You pay that to the CCCS who in turn distribute ALL of it amongst your creditors. A fee charging company (like the one you spoke to) will take maybe £50 a month out of your £300 to keep for themselves. This means your debts will take longer to pay off and you are lining the pockets of scum basically.

Just out of interest, what was the name of the company you spoke to?

in_debt_again_but_dealing_with_it

Welsh_cake and soa is a statement of affairs. Visit the CCCS and payplan website before speaking to anyone else they really will show you the options open to you. A DMP will reflect the amount you are able to pay to creditors after your essentials have been paid. Don't rush into anything or be pushed towards something without looking at all your options. Take care.
IDA
xx

southernscouser

beentherewornthetshirt wrote: »

Hi Welsh_Cake.

I own a Debt Advice company and do not charge any fees for DM. If you want me to calculate a repayment proposal for you that you can send to your creditors with offers of payment, PM me.

Woah hang on! :eek:

Can you elaborate exactly what company you own and what your interests are? :think:

welsh_cake

It was called Gemstone. they have a website https://www.gemstonefinance.com i think.