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Credit Card debt management issues
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Wicko44
Posts: 7 Forumite
in Credit cards
Hi, if a credit card company end up referring you to a debt management company because you’re not able to meet minimum payments despite the fact they have stopped charges and interest …..what does the debt management company do exactly please? Will they be at my door asking for my car or tv or anything please? Or would they help me with arranging some kind of long term repayment plan?
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No they won't be coming to your door. And there is no obligation on your part to let them in if they did (which they won't). What they'll do is write threatening letters but ultimately as long as you agree to pay a bit of the debt each month they'll likely be quite happy.
Do you want to pay anything off? Are you able to and still afford your rent/mortgage, council tax etc? Let us know and we can direct you further.I’m a Forum Ambassador and I support the Forum Team on Debt Free Wannabe, Old Style Money Saving and Pensions boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.
Click on this link for a Statement of Accounts that can be posted on the DebtFree Wannabe board: https://lemonfool.co.uk/financecalculators/soa.php
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"Never retract, never explain, never apologise; get things done and let them howl.” Nellie McClung
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They are just following FCA advice, when people are in financial trouble.
But do make sure that it is one of the charities that deal with this (should be) & not one that will charge for their services.Life in the slow lane0 -
They might refer you to a debt collection company but I doubt that they will refer you to a debt management company. The difference is important.0
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They don't refer per se to debt management companies but they can and do refer you to a debt advice organisation or charity (the free ones) if they see you are struggling especially like the OP even after they have stopped chargesMEM62 said:They might refer you to a debt collection company but I doubt that they will refer you to a debt management company. The difference is important.Sam Vimes' Boots Theory of Socioeconomic Unfairness:
People are rich because they spend less money. A poor man buys $10 boots that last a season or two before he's walking in wet shoes and has to buy another pair. A rich man buys $50 boots that are made better and give him 10 years of dry feet. The poor man has spent $100 over those 10 years and still has wet feet.
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Agree - it's quite standard for bills from lots of companies to have a "are your struggling?" section that suggests talking to StepChange or NationalDebtline. But it did seem the OP was talking about the bill being referred/passed onto a debt collection company.Nasqueron said:
They don't refer per se to debt management companies but they can and do refer you to a debt advice organisation or charity (the free ones) if they see you are struggling especially like the OP even after they have stopped chargesMEM62 said:They might refer you to a debt collection company but I doubt that they will refer you to a debt management company. The difference is important.I’m a Forum Ambassador and I support the Forum Team on Debt Free Wannabe, Old Style Money Saving and Pensions boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.
Click on this link for a Statement of Accounts that can be posted on the DebtFree Wannabe board: https://lemonfool.co.uk/financecalculators/soa.php
Check your state pension on: Check your State Pension forecast - GOV.UK
"Never retract, never explain, never apologise; get things done and let them howl.” Nellie McClung
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