Best and most reliable debt management companies?

mkgirl

Hi

I've got myself into a bit of a pickle financially. And having checked all the options I feel debt management is the way I need to go.

CAP do not operate near me or I would have sought help from them. Which other companies are reputable and will pay my money on time and keep the harassment at bay?

Thanks.

so_very_confused

I am with Stepchange and aside from a few minor blips I have generally found them excellent. However they are limited in what they will/can do with regards to creditors stopping/reducing interest. They also have a strange way of allocating funds which for some have meant reintroduction of interest. There are a lot of people on the forum who self manage their DMP and this is something I will certainly be looking at in the future. Your debts remain yours therefore I have found it pays to communicate with all your creditors however daunting that prospect may seem. I have found them generally to be helpful and of my seven creditors they have all stopped interest ( not saying they won't introduce) and have been helpful. Unfortunatly mine all remain with original creditors therefore have only mangled two defaults . Working on it. I was previously on DMP with CAB which was so badly conceived I ended up paying 1000s in interest, long story but heartbreaking.
Whatever you choose, good luck.

Puzzcat

I am with stepchange, they have an online debt remedy on the website that you can use. I have had no issues with them but they can't stop your creditors contacting you and although most will freeze/reduce interest it is down to you to fight for this.
Puzz

bargainbetty

Do not go with a fee paying company - there is no point, they cannot do anything the free ones can (despite what they may try to tell you) and if they go bust you will be even further up the creek.

Only use the charities - National Debtline can also recommend those for you. Just make sure all of your money is going to paying your debts.

Good luck

moohound

I was with payplan, and they were good and suited my needs at the time, they do try to sell you life insurance though.

There are horror stories of fee charging companies going bust and leaving people in the lurch, as well as charging for something that is free with one of the charities.

Monkeyballs

Hi,

I'm with Step Change and personally I have nothing of praise for them.

In line with what others have already mentioned you will need to follow up on getting interest and charges stopped/frozen (most creditors will do this but you'll want to check to be certain), best advice I can offer is to remember that the debt is still yours and ultimately you need to be involved to make sure balances are correct and there are no nasty surprises lurking around the corner

Oh, and if you have a Barclaycard keep on top of them to confirm that they have your DMP details as they seem to be notorious for not knowing until you call...

Good luck!

MB

FireWyrm

mkgirl wrote: »

Hi

Which other companies are reputable and will pay my money on time and keep the harassment at bay?

There is no such beast.

All fee-paying management companies are LIMITED companies which means that when they fold, your money goes bye bye right along with them. You are classed as a 'debtor' to the company and thus, when they go out of business, you are left at the back of a VERY long queue to extract what money you can from them. They will most likely NOT have your money in any kind of protected account and it will be counted as a company asset to be used as the directors see fit.

There are some horrific stories of people who have paid money to these shysters (call a spade a spade) and have found out that the company was a) not paying their creditors, b) not paying their own creditors and c) the money is vanished into thin air. Some people have lot tens of THOUSANDS of pounds this way.

Quite apart from that, these companies charge a hefty fee for only doing what you could do yourself. They cannot magically make your creditors freeze interest, or stop calling you. They take a cut for sending your money to your creditors, that is all. You just end up paying more for nothing with added risk of losing the lot at any given moment.

ghostmadlittlemiss

I totally agree with FireWyrm (although they might've got slightly confused about exactly what you were asking), whatever you do, DON'T go with a fee paying company. The only reputable companies other than CAP are StepChange and Payplan. The rest are thinly veiled crooks.
Kayleigh

antonic

PayPlan for me

see my sig for details

tealady

Please do NOT, NEVER, EVER go with a fee paying company, the thread on Bournes Debt Solutions is a good example why.
There is free advice and help out there (there is also the option of the self managed DMP).
This site is a fantastic resource for advice and info on becoming debt free, for the most part people are non judgemental so if you post your Statement of Affairs (SOA - there's a sticky), then we can suggest ways you can deal with debt yourself.
Whatever you do decide good luck.

mkgirl

Thank you so much for the responses. I really appreciate it. I'm so angry I've let myself end up in this situation. One minute I was in Control and the next it's spiralled to this.

Are Paylan completely free too?