Debt settlement

jemima22

Loked into debt settlement. Not a loan - i make 1 payment to a company and they pay my creditors. They do a deal so I pay less. They are offering to pay all my debts for 285 a month rather than the 530 i pay. Their fee is included in the 285. Obviously v appealing as each month i am over my overdraft limit. In this way i can pay of my debt in 4 and a half years.
Obviously it affect my credit score.
Not sure what to do??? Need a way out but want to buy a house in next few years which worries me?? Will this go against me??
Any experience / advice???

~Beanie~

Dont do it!!! This is essentially a debt management plan and you are paying a fee for it :eek: . CCCS or Payplan will do exactly the same thing for you for free - the money you pay in fees could go towards reducing your debt!

MrsTinks

As Beanie says...DON'T DO IT! Contact CCCS or one of the links in my signature and they can help you do this without you paying the debt management companies who are just rip off merchants taking advantage of people already struggling!
Personally I think they should all be banned!

jemima22

Thanks for your advice. Used cccs website for remedy according to them i am not suitable???
I can physically make my repayments but over overdraft limit each month, seems this doesn;t qualify??

GeorgeUK

Post up a SOA - http://www.makesenseofcards.com/soacalc.html

We may be able to tell you how to structure payments or reduce the interest on some of your debts.

jemima22

That format weird and not relevant.

Income --- £1262


Outgoings
Rent ---- £600 ( this is my share of all bills, food, council tax, sky aswell)
Car ---- insurance £60
---- tax £10
---- mot £10
Gym --- £50
Phone --- £40

Total

---

£770

Debt
overdraft --- 1500 ---- £50monthly
loan

---

5600 ---- £200
credit card --3600 -- £170
credit card ---£1500 --£50
store account --£500- £40

Total each month - £520

770 +520 = 1290