Need advice on DEBT Management Companies

jackie710

Hi Everyone,

I have had a desperate few months with our debt problems and the continuous phone calls and harrassment from creditors!! This has lead to the usual 'head in the sand' and sleepless nights! So, with not being able to cope anymore with the harrassment I did a search on the net for a company that could somehow take the stress away -

After meeting one of their advisors I felt alot calmer and in control - but after having time to think about it and still having some of the creditors ringing me saying they have not heard anything from this company. I have looked at the agreement - I am paying 3 payments of £204 first for their fees then £300 per month there on after to pay the creditors.They claim I will be debt free in 5 years.
IS THIS NORMAL PRACTICE?

I could be paying this money towards creditors.:rolleyes:

At the time I was very emotionally vunnerable and still am - at the moment I have the permanant feeling of not being able to get out of this situation or coping for much longer.

If anyone could enlighten me and let me know if I have made a bad decision
going with this company?

Cheers

Miia

Hello

I justed wanted to say welcome and I know exactly how you feel.

Someone with more experience on this will be along soon.

Miia

PS - you will be asked to put a statement of account together. Check this link out:

http://forums.moneysavingexpert.com/showthread.html?t=821791

Sammy_Girl

Hi Jackie :hello:

Firstly, don't panic, you've come to the right place. There will be some great people offering their advice, so don't worry.

I'm no expert on DMPs, but I do know that you are so much better off, organising your DMP through one of the free charities such as CCCS. You're quite right, when you say the fees could be used to pay off your creditors. Have you already signed an agreement with this private company? If not, DON'T!!!!!!! Please call CCCS and they will be able to talk through a solution with you.

Also, it's a good idea to post your Statement of Affairs up here which lists every single incoming and outcoming that you have, along with debts and APRs. That way, the good people on here can advise where you can cut costs and increase your income.

Sammy x

rayday2

It does not sound like a DMP that they are arranging and you definately do not get impartial advice from sales men you need to speak to one of the charities who can do it all for you but every penny services your debt.

You get the same quality of service too in fact you can get better advice because if there are any issues with the legality of debt chasing the charities are more keyed up to it.

jackie710

Hi,

Thanks for the advice - I will contact CCCS tonight and see if they can help us.
Also I will have a look at the agreement I signed.

These charities do they help you all the way through the process of a DMP long term - not just helping you through a budget plan and organising your debts then leaving you to do the rest. Because at the moment my head is that fried!! I am very mentally emotional and probably I would find it very hard to stay focused. I never used to be like this - very strong but with all the pressure the past few months have taken its toll!

Cheers

rayday2

They are compassionate in their approach, they talk through things with you, they contact your debtors and they dish out the payments!

jackie710

Hi,

Rayday2 thanks loads for your advise - I will be contacting them tonight and hopefully I can move away from this company that is charging me!!

Cheers

rayday2

There is a big DMP support thread about that is full of people over 200 at various stages, deciding too, starting it up, near the end and a lot of people deal with the CCCS so if you want some virtual propping up take a look - no need to read it all but dive in they are lovely people in there who have been where you are now.

scooterwife

we've been on dmp with CCCS for a year & a half, and they stay with you. they help set up budget (& remind you about things you've forgotten) and contact debtors, and send out budget updates. they also do a yearly update and if you have any problems/questions you just ring them. they are lovely!:j
and stick around here as well, loads of advice & support:T

jackie710

Hi,

Thanks loads everyone for your advice - just rung CCCS and got the ball rolling - appt to sort out DMP on 16th June.
CCCS told me to ditch the company I was with and cancel payments to them. They were shocked at fees I was having to pay!
This has been brilliant chatting to you all and having all your support I will continue chatting with you all in the DMP thread .
Here is to a debt free life!! Can't wait! although it might take a few years!

Cheers again

RAS

Glad you have made a more effective decision.

Several CCCS staff post on here with formal permission from MSE, so if you want to ask, they can help with general enquiries. For support and space to be happy, sa or whatever, talk to the guys on the DMP supporters club.