We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Scared to do anything now, would love advice...
EmptyPockets
Posts: 1,905 Forumite
Hi all,
Ok, well, my husband and I have debts amounting to about £8000. This is credit cards x4, a three-piece-suite, store card x1, and a personal loan from a family member.
After a change in employment for my husband, we began struggling to meet minimum repayments on all of the above, and so we sent out template letters to each creditor explaining our financial position, with an income/expenditure list, and asked that they accept reduced payments until our circumstances changed. For the last six months we have been making the reduced payments on time and it's been a lot easier financially (and mentally!)
But now, the six months has ended, and although our circumstances have improved a little, we cannot afford to pay back much more than we already have been. the creditors think differently, of course. One, which we have been paying £5.34 a month to, has suddenly started saying that we MUST now pay at least £291 a month, which is not possible, but anyway, they won't listen.
Last night we spoke to a financial advisor at Abacus Financial Consultants, who did a search for us and told us what we already knew - we would not be accepted for a loan by anyone because of our history of defualts, etc :-( but he said we still had options, and that the best way for us to go might be a 'Debt Management Plan'... I'd never heard of this before, but he asked us how much we could comfortably afford to repay each month, and we said no more than £260. He then said we could pay Abacus £195 a month (leaving us better off) and that Abacus would take the heat off us with the creditors, he said they arrange lower payments with the creditors, no more threatening letters for us, no more nasty phone calls... which to us sounds like a dream come true. plus, he said that the added benefit is that in four years, we will have paid all our debts without taking out a loan which costs more in the longrun and longer to pay off anyway. he also said that they would get all interest frozen and charges stopped.
my question is, should we go ahead? i'm just so nervous of doing the wrong thing, or being ripped off... is this 'plan' a good thing? has anyone else done a 'debt management plan'??? has anyone dealt with Abacus before?
Please help, all we want is to start getting rid of all this hassle... are we about to get ripped off, or is this company one of the 'goodies'?
Rachel x
Ok, well, my husband and I have debts amounting to about £8000. This is credit cards x4, a three-piece-suite, store card x1, and a personal loan from a family member.
After a change in employment for my husband, we began struggling to meet minimum repayments on all of the above, and so we sent out template letters to each creditor explaining our financial position, with an income/expenditure list, and asked that they accept reduced payments until our circumstances changed. For the last six months we have been making the reduced payments on time and it's been a lot easier financially (and mentally!)
But now, the six months has ended, and although our circumstances have improved a little, we cannot afford to pay back much more than we already have been. the creditors think differently, of course. One, which we have been paying £5.34 a month to, has suddenly started saying that we MUST now pay at least £291 a month, which is not possible, but anyway, they won't listen.
Last night we spoke to a financial advisor at Abacus Financial Consultants, who did a search for us and told us what we already knew - we would not be accepted for a loan by anyone because of our history of defualts, etc :-( but he said we still had options, and that the best way for us to go might be a 'Debt Management Plan'... I'd never heard of this before, but he asked us how much we could comfortably afford to repay each month, and we said no more than £260. He then said we could pay Abacus £195 a month (leaving us better off) and that Abacus would take the heat off us with the creditors, he said they arrange lower payments with the creditors, no more threatening letters for us, no more nasty phone calls... which to us sounds like a dream come true. plus, he said that the added benefit is that in four years, we will have paid all our debts without taking out a loan which costs more in the longrun and longer to pay off anyway. he also said that they would get all interest frozen and charges stopped.
my question is, should we go ahead? i'm just so nervous of doing the wrong thing, or being ripped off... is this 'plan' a good thing? has anyone else done a 'debt management plan'??? has anyone dealt with Abacus before?
Please help, all we want is to start getting rid of all this hassle... are we about to get ripped off, or is this company one of the 'goodies'?
Rachel x
"Your life is what your thoughts make it"
"If you can't bite, don't show your teeth!"
"If you can't bite, don't show your teeth!"
R.i.P our beautiful girl Suki. We'll love and miss you forever
0
Comments
-
p.s we are scared to do anything because we just got ripped off by yes loans ltd - we paid the fee of £49.50 after being told we'd been accepted for a loan, only to later discover they are merely a broker and we had only been accepted as their 'client' :-( so now we're paranoid that everyone is out to get us lol!"Your life is what your thoughts make it"
"If you can't bite, don't show your teeth!"
R.i.P our beautiful girl Suki. We'll love and miss you forever
0 -
Hi
Well done for posting. First thing to do is post an SOA. Follow the link and this will show you how it is done http://forums.moneysavingexpert.com/showthread.html?t=107280.
Contact http://www.payplan.com/ or http://www.cccs.co.uk/ or your local CAB. Do not pay for this service as Payplan/CCCS/CAB make sure that all your payment to them goes to your creditors. They do not take a fee.
Abacus cannot say that they will stop all hassle as that is not the case. Probably called Abacus to ensure they are top of the list in yellow pages !!!!.
Ring one of the above companys and they will advise you as to the best course of action. I am on a DMP with Payplan and they have been brilliant. It is daunting to face your problems but i wish i had done this years ago
Good luck
ym0 -
PROCEED WITH EXTREME CAUTION! A couple of points based on others' experiences of "Debt Management Companies" on MSE...
1. (Most important) The company will take a cut for its services.
2. There is no guarantee that they will indeed "take the heat off you" with regard to creditors.
Check out the CCCS -they're free, so they don't take a cut, which means more of the money goes on reducing the debt:
http://www.cccs.co.uk/
Also, make an appointment to speak to someone from the Citizens' Advice Bureaux.0 -
Hi Empty Pockets.
I am on a DMP with CCCS. and some of what the rep has stated is true. but the length of a DMP is variable and also it depends on the creditor to if they will stop all interest and charges!
please speak to either Payplan or CCCS (links at top of page) as they offer a free service and are charities!!!
also if you can post a SOA (see southern scousers sticky) we may be able to help you furhter.0 -
Hi
Feel free to pop along to the DMP thread http://forums.moneysavingexpert.com/showthread.html?t=454457
We are all in the same boat and the advice is really good if a DMP is the route you follow
ym0 -
Hi EmptyPockets,
I would also advise ringing CCCS or Payplan. If you send £195 each month to Abacus, I bet only £150 will make it to your creditors. CCCS andd Payplan both offer the same service, for free.
My DMP with CCCS started a year ago today. Everything has settled down, the phone calls have stopped and we only get the occasional letter from our creditors.
Stick around here and you will get loads of valuable advice
Is it better to aim for the stars and hit a tree or aim for a tree and land in its branches :think:Loves being a Wonderbra friend :kisses3:
0 -
Hello EmptyPockets,
You could also follow this link www.cccs.co.uk and use our online advice facility called Debt Remedy. It helps you put together a budget and advises you on the best ways to deal with your situation.
Let us know how you get on.I am a Debt Counsellor that works for the CCCS and have specific permission from Martin, to post on these boards to try and help those in debt. Read more information on the CCCS and what it does in the Debt Problems: What to do and where to get help article.
CCCS is a registered charity, and there is no charge whatsoever for any of the services we provide to our clients. We take great pride in offering first class help and advice, but we only offer this where we have been able to fully explore and understand your circumstances with you. We want to help you understand these choices and their possible implications but not make them for you.0 -
Oh, a massive thank you to all of you for replying! I will show this thread to my husband as soon as he gets home from work, I think he'll be glad I posted!
It feels better to be talking to people who know how we feel, I will definately be coming back here. I'll follow the advice given by every one of you, starting with posting an SOA as some of you mentioned, so you might help us further.
I'm sooooooo glad I asked your advice before proceeding with anything, this guy from Abacus did sound really friendly on the phone but my husband was, naturally, nervous of committing to anything there and then until we'd talked about it, and so he asked the man to call us back tonight, which he is doing at about 5.30pm... we haven't agreed to anything or signed anything, so we can just tell him we've changed our minds, right?....
Once again, thanks to all of you, any more advice is welcome! lol, and I'll be showing this to the hubby when he gets home
Rachel x"Your life is what your thoughts make it"
"If you can't bite, don't show your teeth!"
R.i.P our beautiful girl Suki. We'll love and miss you forever
0 -
EmptyPockets. You do not need to explain when he rings. When you start off on this road the amount of info you get can be bewildering. Tell him (If you answer the phone) that you need more time to consider your options. You do not even need to pick up the phone to his call.
Good luck and you are not alone. I was in the same situation as you 5 months ago and there is a path out of it. Take your time and absorb the info and then make your decision
Good luck
ym0 -
Thank you ever so much... God, this feels good! Just to talk to you guys about all this!! You deff won't be able to get rid of me now, sorry everyone :j"Your life is what your thoughts make it"
"If you can't bite, don't show your teeth!"
R.i.P our beautiful girl Suki. We'll love and miss you forever
0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 352.2K Banking & Borrowing
- 253.6K Reduce Debt & Boost Income
- 454.3K Spending & Discounts
- 245.2K Work, Benefits & Business
- 600.9K Mortgages, Homes & Bills
- 177.5K Life & Family
- 259K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 37.7K Read-Only Boards