Debt Management Plans - do they work

spideyneedshelp

Ive just started a debt management plan with a company called churchwood financial as i have over 12 thousand pounds of debts and cannot afford to pay them back there required amounts each month as i now have a baby on the way,so i really need to no if these plans actually work or if im heading for a whole heap of problems entering it

Sooty0404

As long as you maintain the payments you should have no problems. Ensure that your management company are not charging you for their services as you can obtain this facility free of charge by respectable recognised organisations elsewhere. Good Luck.

spideyneedshelp

yes they are charging me a small percentage of what i pay them,i take it this is a bad idea then?

lindens

There are a few charity advisors out there who do an excellent job and will charge you nowt. They are namely CCCS, National Debtline and of course the Citizens Advise Bureau. Most people on this forum have used one or other of these. Have a look at southernscousers sticky at th top of this forum for more advise.
However, you've made an important step by fACING UP TO YOUR DEBTS AND DOING SOMETHING ABOUT IT (sorry caps lock).Well done, thats not easy!
If it's not too late I would not sign anything with the company you have already seen until you maybe read a bit more of the posts on this site and maybe ring one or all of the companies I mentioned.
I personally wouldn't pay anyone to sort out my debt, I'd rather ALL my money went onto my debt.
Good luck

yellowmonkey

Hi.

As everbody else has said do not go with a fee charging company.lindens mentioned a few. You can also add Payplan to that list. I have just started a DMP myself with Payplan and up to now they have been very helpfull.

Good luck

YM

Sooty0404

spideyneedshelp wrote: »

yes they are charging me a small percentage of what i pay them,i take it this is a bad idea then?

If they are taking their cut from your payment before it reaches your creditor its not so good. For example if you pay a tenner and only nine pounds comes off your debt you should look elsewhere.

If, however, the full £10 is taken off your debt and they recover their commission from the creditor it doesn't make any difference.

As the previous post says - well done for getting things under control.

spideyneedshelp

i want to thank all of you that have gave me advice and for the support you have offered,i have been with my DMP for 2 months now,ok i no they are taking a percentage of what i pay,but i am satisfied with that,i do believe it would be to late to cancel anything now as im 2 payments in now,ther is something i would like to no from anyone else on a DMP,do the letters stop from the intial creditors,ive had more than a fair few now,all saying unless i contact them,they will start legal proccedings against me or have been instructed to start.This in itself is worrying but the DMP company have assured me this natural and they wouldnt stand a chance in court,is this true,or should i start to be worried

System

Spidey, you need to bin them and get onboard with Payplan or CCCS - they dont charge anything and seen in a good light by the creditors. Lenny

spideyneedshelp

i no this may seem stupid,but can i ask how to find them?

gettingitsorted

https://www.payplan.com

https://www.cccs.co.uk

System

spideyneedshelp wrote: »

i no this may seem stupid,but can i ask how to find them?

Sorry SPidey, I should have put the links in. Thanks GIS. Just give em a ring.