Consolidating debt

24 Posts

in Credit cards
A friend has recommended Payplan Plus. She said it was a Government scheme. It takes over your credit card debts (especially ones with expired interest-free deals) and discusses with you a payment plan, interest-free based on your needs both commitments and social.
She said she used them.and.is.now credit-card free.
Is this genuine or a scam?
Will it affect my good credit rating?
Thanks
She said she used them.and.is.now credit-card free.
Is this genuine or a scam?
Will it affect my good credit rating?
Thanks
Linda
1
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Replies
PayPlan just provides advice with how to manage your debts, It doesn't take them over or pay them for you.
Visit the DFW boards for advice on your debts as a whole. Defaulting may have been the right solution for your friend, but you might have other needs.
They did take over my friend's credit cards and paid off the balances. She then paid them an agreed amount, interest and fee free, each month and thus, without interest of around 21%, was able to discharge her debts more quickly.
Of course now she is inundated with credit card offers but with no monthly payments, can now save and therefore has no need for a credit card.
I should say that we are both pensioners, don't own our own homes but still have very high credit scores.
Does anyone else have a similar experience.of this company which stat snit is a government approved scheme?
Your high credit scores don't matter. Once you default on debts, your credit worthiness is in the toilet. So you need to establish if your credit worthiness is important to you or not. It may not be, especially if you're not a home owner so can't have a charge put against your property or have remortgage concerns
My friend's experience, once she had agreed monthly amount with Payplan, her credit card statements then showed 0 balance.
This is not a default, but cards paid off in full
You can’t pay lower than your minimum payments on your credit agreements and keep a good credit history.
Your friend may indeed have used payplan and now be debt free, but this comes at the expense of a trashed credit history.
You can’t have your cake and eat it.
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