Debt Settlers

girlfrom1977

Hi, just looking for some advice and reassurance. I have around 15k in debt over 5 creditors and was looking to possibly consolidate them as I have been living paycheck to paycheck with no quality of life.

So, long story short, I eventually got speaking to a company calles Debt Settlers who were great, although reducing my monthly payments from around £600 to £300, splitting the money between my creditors. Right off the mark I thought it sounded too good to be true but I made him go over it a hundered times and it seemed to make sense so he emailed me a contract and I signed it and sent it back.

Since then I have had constant calls from other companies saying I've done the wrong thing, they'll scam me, I should have gone with them etc So I have phoned Debt Settlers a few times this week, frantic about what I have signed up for, but again they have been very reassuring, but if what they've told me is right I can finally have a life.

What I am most worried about, having read other stories, is them not paying my debts and disappearing and finding myself thousands in arrears a few months down the line. I have already missed payments this month as they told me not to make any as they had sent letters and they will deal with it.

Sorry for rambling but I am absolutely terrified. I'm only 25 and lived my life under the shade of a psychiatric disorder, but I have recently woken up and am loojing forward to living life and having fun and new experience, but I feel if this goes wrong the consequences will be disastrous.

Please help! Am I going to get scammed? What should I do now?

Growurown

Hi, I don't know anything about the company you are with, however they will charge you a fee so not all your money will go towards your debt. There are free providers out there who will do the same for you, and all your payment will go towards your debt. Take a look at the Step Change website or Pay Plan.

nottoolate

what can happen https://forums.moneysavingexpert.com/discussion/4359291

FireWyrm

There are numerous threads about the sudden liquidation of One Debt Solution and with horrific stories of large amounts gone astray such as NotTooLate published above.

The bottom line is that no one can 'reduce' your monthly payments. No one can get rid of the debt for you, except you and with hard graft and commitment and they certainly arnt going to do it for free.

My advice, for what it's worth, is cancel any contract you have with them and refuse to take their calls...effective immediately. Post your SOA here, or go to StepChange (a free charity) for help. You can do everything these 'companies' do for you, for free and be sure that your money is going to pay YOUR debt, not their running costs.

DO NOT USE FEE PAYING COMPANIES TO MANAGE YOUR DEBT. They are not your friends, they are not helping you, they are fleecing you.

runforlife

Not sure if its of any help or reassurance but more info on Debt Settlers at Companies House website. Search for company number 07073162 or Debt Settlers Limited

http://wck2.companieshouse.gov.uk//wcframe?name=accessCompanyInfo

FireWyrm

runforlife wrote: »

Not sure if its of any help or reassurance but more info on Debt Settlers at Companies House website. Search for company number 07073162 or Debt Settlers Limited

http://wck2.companieshouse.gov.uk//wcframe?name=accessCompanyInfo

It is a limited company which means that it is solvent up until the point when it isnt and all depositors money goes into a big hole. There is no guarantee that the depositor's money is actually sent where they claim it is and if you pay them money, you might as well kiss it goodbye because the best case scenario is that only SOME of it will end up with your creditor.

I'm sure One Debt Solution LOOKED equally healthy until it decamped with £17K worth of one posters' money.

National_Debtline

Hello there,

As the others have already said, you are paying a fee to Debt Settlers for what appears to be a Debt Management Plan. it is possible to have a FREE Debt Management Plan via our good friends at Stepchange or Payplan. This means that all of your available surplus income would be used to pay the debt. Ultimately you'll pay the debt off faster.

It is also possible to self-negotiate by making reduced offers of payment in writing to each of your creditors. We have lots of useful information available on our website: http://www.nationaldebtline.co.uk/

We've a brief guide outlining all debt-related options which you can find here: http://www.nationaldebtline.co.uk/england_wales/page.php?page=35_options_for_dealing_with_your_debts

Hope you find this information useful!

Best wishes,

David @ NDL.

Time_to_face_the_music

girlfrom1977 wrote: »

Hi, just looking for some advice and reassurance. I have around 15k in debt over 5 creditors and was looking to possibly consolidate them as I have been living paycheck to paycheck with no quality of life.

So, long story short, I eventually got speaking to a company calles Debt Settlers who were great, although reducing my monthly payments from around £600 to £300, splitting the money between my creditors. Right off the mark I thought it sounded too good to be true but I made him go over it a hundered times and it seemed to make sense so he emailed me a contract and I signed it and sent it back.

Since then I have had constant calls from other companies saying I've done the wrong thing, they'll scam me, I should have gone with them etc So I have phoned Debt Settlers a few times this week, frantic about what I have signed up for, but again they have been very reassuring, but if what they've told me is right I can finally have a life.

What I am most worried about, having read other stories, is them not paying my debts and disappearing and finding myself thousands in arrears a few months down the line. I have already missed payments this month as they told me not to make any as they had sent letters and they will deal with it.

Sorry for rambling but I am absolutely terrified. I'm only 25 and lived my life under the shade of a psychiatric disorder, but I have recently woken up and am loojing forward to living life and having fun and new experience, but I feel if this goes wrong the consequences will be disastrous.

Please help! Am I going to get scammed? What should I do now?

From their website FAQs page:

"Do you charge a fee for the services you provide?
FEES WILL BE CHARGED IF A SOLUTION IS TAKEN OUT.
Fees related to Debt Management Plans are in two parts:
“Initial Fee” means your first two “Monthly Payments”, which is paid by You to “Us”. This represents our fee for establishing your arrangement, and therefore is not distributed to your creditors, and can be paid in two separate instalments. Retention of this fee will put you into further arrears if you have been up to date with your payments. If you have already missed payments and have defaults and CCJ’s, this may be marked as an “Arrangement To Pay”.


“Monthly Fee” means the Fee payable for our Services each month. This is an amount equal to 17.5% of your “Monthly Payment” (apart from your first two “Monthly Payments” which is the “Initial Fee”), subject to a minimum payment of £35 for disposable incomes of 0 – £100, and £39.50 for disposable incomes of £100.01 upwards(maximum of £100 a month). The monthly management fees are all included in your monthly payment to us. "

Cancel this immediately, do not pay them anything, contact your bank and cancel any authorisation for payment.

If you need help with your debt, read this excellent thread by Fermi, who tells you all you need to know:

https://forums.moneysavingexpert.com/discussion/4228011