Clearing my debts

AaronR

Hi

Need some advice, I have been in a DMP since 2010, this passed to Harrington Brooks and I have been paying a measly £100 off my debts which £38 is their fee! I had a statement from them around xmas saying it would take 15 years to pay off my remaining debts of roughy £9500 and i would pay them a total over £15!!!

I am now in a much better position financially so can pay more off. I have been advised to deal directly with the people I owe money too (even though some have been sold to the likes of Idem, Wescot and Moorcroft) and agree and set up a plan with them so the money goes directly to paying off the debt. Is this advisable? I need to get rid of this as quick as possible!!

Harrington brooks advised me that staying with them offers a level of protection from the likes of moorcroft and they wont be able to chase me but when I deal directly with them they will be able to move the goalposts etc

What would you do?

Thanks

Grumpelstiltskin

What would I do? Ditch the leeches now ASAP.


Of course they are going to tell you a load of cow manure, you are paying them for something you could either use one of the debt charities or do it yourself at no monthly charge.

AaronR

even though it would mean dealing directly with the likes of wescot and moorcroft? who dont have the best reputation!!

KirstyO

if you're not happy dealing with them yourself, get your DMP through one of the free charities (Stepchange, National Debtline, Payplan), at least then 100% of your money will go to the lenders. This in itself should reduce the length of the DMP plus if you can afford a bit more then it will be shorter still. There is good news though if your DMP runs over 6 years...any defaults or CCJs you had when you started will have dropped off by the time you finish!

Grumpelstiltskin

Aaron start reading here.


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


As I said the majority of what they have told you is cow manure, they are never going to turn round and say ' Aaron of course go your own way' whilst they are making money from you every month.

AaronR

Thanks! Stepchange cannot help me as I can afford to pay off more of my debts, they said my income and expenditure means i dont really fall into the bracket they can help!

KirstyO

I see, speak to the other charities and see what they suggest. Do you have lump sums you could offer in full and final settlement, or is it a case of increasing your monthly repayments to each creditor?


A good one is the snowball calculator if you go self managed. It helps you to see which debts to get rid of first based on amount owed and interest etc, and how the impact of getting rid of debts in a certain order can reduce your repayment terms.

AaronR

No I dont have lump sums to pay but I can increase what Im paying from £100 to £250 a month. I have already negotiated with Tesco credit card and agreed 12 months at £50 a month, wescot have agreed the same also and moorcroft agreed a figure last week. Idem and lloyds require me to send them my financial ins and outs.

the interest is frozen on all my debts

KirstyO

send your Statement of Affairs to those who ask but make sure you include your agreed repayments to others. Also explain that you are in the process of agreeing repayment with other creditors and on this basis can offer a payment of £x per month.


Make sure they respond in writing to your offer.


It sounds like you're almost there to being self managed. If you have £250 a month to throw at your debts, and 5 creditors, it sounds like you should be offering £50 a piece. You need to show that you are being fair to all of your lenders in offering each one the maximum you can afford at this time.


Looks like you're doing great

AaronR

Thank you very much for your kind words KirstyO

Grumpelstiltskin

Aaron once you have taken full control of your debts you will feel better.


All your creditors will be receiving more than they did whilst you were with HB so why should they be unhappy?


You will find it empowering.