Debt Free Me

chirst147

I had a guy from Debt Free Me visit on the 13th Feb and he went through the full process of getting an IVA. He told me that I had to pay 3 payments in the first three months to cover their fees and then the fourth month my first payment to the IVA would be made with it all going to the Creditors.

I have been trying to find out about the company to ensure they are legit as I do not wish to be left in a worse position and have heard horror stories about companies that do not pay on the contributions to creditors. The fact that I have to pay up front is worrying as I do not wish for them to take my money and run.

Having read the other threads talking about Debt Free Me I am wondering whether they are the same company that I have been dealing with as there are a couple of websites referring to Debt Free Me.

Their website is http://www.uk-debtline.co.uk/ Could someone let me know your thoughts as to whether this is the same Debt Free Me posing as CCCS and advise whether they think I should steer clear.

Regards
CH

poorandindenial

Hi

Did you get referred to these guys by one of the charity debt counselling services?? If not they are possibly shonky. IVAs make companies a lot of money so they may well sell them as the only option if they aren't being responsible..

Did the rep explore other options with you or go straight for the IVA??

Have you read Martin's IVA guide??? - I'll get the link just in case you haven't.

poorandindenial

Links:
Debt Charities
IVA Guide

chirst147

Thanks for the info poorandindenial. I have done a lot of research and ringing around to find out what my solution was and an IVA is probably right for me for the following reasons:
1/ Tried to consolidate my unsecured debt but nobody will touch me as I have a poor credit rating.
2/ Debt management will only serve to postpone the debt till a future date when I will still have to try and pay it back some time in the future. The thought of 10 years paying back the debt this way does not appeal to me.
3/ Re-mortgage - no equity in property and difficulty in remortgage with bad credit rating.
4/ Bankruptcy - can't do it with the job I am in (Accountancy).
5/ Only option left is IVA which I do not mind on my credit rating and all being will could potentially pay it early if parents can lend the money to pay balance after 2 years. This way I would owe parents money and it would be a lot less than my existing £32k owed to various institutions.

I will speak to a charity debt counsellor and also CAB to see if Debt Free Me are OK to use as I really don't want to get into problems with them not paying Creditors.

Any further advice/help will be appreciated.

Thanks

IWantToBeFree_2

chirst147 wrote: »

Thanks for the info poorandindenial. I have done a lot of research and ringing around to find out what my solution was and an IVA is probably right for me for the following reasons:
1/ Tried to consolidate my unsecured debt but nobody will touch me as I have a poor credit rating.
2/ Debt management will only serve to postpone the debt till a future date when I will still have to try and pay it back some time in the future. The thought of 10 years paying back the debt this way does not appeal to me.
3/ Re-mortgage - no equity in property and difficulty in remortgage with bad credit rating.
4/ Bankruptcy - can't do it with the job I am in (Accountancy).
5/ Only option left is IVA which I do not mind on my credit rating and all being will could potentially pay it early if parents can lend the money to pay balance after 2 years. This way I would owe parents money and it would be a lot less than my existing £32k owed to various institutions.

I will speak to a charity debt counsellor and also CAB to see if Debt Free Me are OK to use as I really don't want to get into problems with them not paying Creditors.

Any further advice/help will be appreciated.

Thanks

Hate to sound harsh, but why run up debt if the thought of never paying it back doesn't appeal to you. Sometimes I think reading posts like these are a big kick in the teeth to those who are in far worse financial difficulties than you are, but they face upto their debts, do a DMP & pay back in full.

Are you sure an IVA won't affect your job? I work in accountancy & if I was to enter into an IVA, it would have the same ratifications as making myself bankrupt.

chirst147

IWantToBeFree wrote: »

Hate to sound harsh, but why run up debt if the thought of never paying it back doesn't appeal to you. Sometimes I think reading posts like these are a big kick in the teeth to those who are in far worse financial difficulties than you are, but they face upto their debts, do a DMP & pay back in full.

Are you sure an IVA won't affect your job? I work in accountancy & if I was to enter into an IVA, it would have the same ratifications as making myself bankrupt.

I work for myself as a self employed accountant and therefore an IVA would not affect me at all. I have an ACCA qualification and only Bankruptcy would stop me from having this qualification but I could still practice as I have enough experience to get a practicing certificate and also there are independent organisations such as ICPA who would allow me to be a practicing accountant.

Most of my debt has been built up through trying to build up my business.

As for the "Not wanting to pay it back" comment it's not just black and white. I have spent the last 6 months trying to get a consolidated loan or to get my creditors to help but with absolutely no joy. Instead half my credit card creditors have increased my APR despite me still paying them off and not missing any.

I asked my Mortgage company for help and nothing, I asked all creditors for me to be able to reduce my payments but they said they would only do it if ALL creditors did it and if not they would pass my debt on to an agency.

It seems to me that companies are ok to lend and put up credit limits but don't want to help unless through DMPs. I had a phone call from Egg 2 weeks ago saying that I had gone over my Credit Limit. I explained my situation and they said that as I am trying to deal with it they would put up my credit limit to stop further action. So this morning I get a letter from them saying my account is in default and if I don't pay to get it back by 10/3/08 then they'll take further action. Say one thing and do another.

So I have tried to do the right thing and make efforts to pay it back but to be honest I feel like the creditors are just making it worse and therefore I don't care anymore whether I pay it back or not. I'm sick of the financial institutions only caring about clients who have loads of money and not caring for those who struggle. Banks and other financial institutions used to care about customers, but not anymore. I have clients who haven't paid me for a few months. Do you think I should send threatening letters saying I'll take further action if not paid in 14 days etc??

RAS

Also there may be no equity in the house now, but there could be in year 4 when you have to release it to pay the creditors.

CCCS are a charity and apparently do offer IVAs to those for whom they think they are appropriate. Since it is estimated that 80% of IVAs fail, you really do need to be sure this is the right thing for you long term.

fermi

Yep. CCCS have there own internal provider of IVA's.

CCCS - NEW IVA COMPANY

You can only be referred to them via a genuine CCCS advisor if they think it's in your best interests or is a valid solution for you.

If you do need to consider a separate IVA provider, then it's best to only use one of the firms that are listed and reviewed here:

http://www.iva.com/iva%5Fcompanies/

Debt-free-me don't appear to be there, so I would steer well clear.

chirst147

RAS wrote: »

Also there may be no equity in the house now, but there could be in year 4 when you have to release it to pay the creditors.

CCCS are a charity and apparently do offer IVAs to those for whom they think they are appropriate. Since it is estimated that 80% of IVAs fail, you really do need to be sure this is the right thing for you long term.

Thanks for the advice. My biggest concern is that the organisation handling the IVA wont do the right thing as I am confident that I will continue to pay into the IVA and it will succeed. As for selling the house, I have been told that when I get married next year the house will be jointly owned and they could only get 50% of the equity unless I put it in my wifes name and then they couldn't touch it.

RAS

I think you need some very careful advice about the house. If you are seen to be moving assets out of the reach of the creditors, you could be in trouble.

I know for BK this applies to transfer in the previous 5 years in some circumstances but not the rules on IVAs. Please contact CCCS or the Insolvency Help-line for advice.