Just a quick question . . .

wendywitch

I am working with a debt management company (not sure if I'm allowed to name them on here) and I pay them £100 a month that goes towards clearing my debts.
I was just wondering IF I had extra money to put towards paying off my debts should I pay it to the management company or to the creditors themselves?

katyw

Does your debt management company charge you a fee each month? If not, call CCCS or Payplan who are free :beer:

I'm in the process of switching from a fee paying company (Churchwood) to payplan, and it seems to be going well.

wendywitch

Yes I do pay a fee. I'm a bit worried about changing company in case I end up in more trouble. I was so greatful that someone was going to help me I can't remember if there'd be a charge or anything if I left

kbh4031

Hi Wendy,
I am exactly the same, I was so relieved that some one was going to help me that I didnt realise the first payment of £150 I made to them would be my payment to them for sorting out my depts....it was hidden in the small print!!! They also charge me £30 pr mth, but I think its worth it.
I did try payplan but they said I didnt earn enough to pay anything off my depts....
I have also wondered about wether to pay the creditors or not and my conclusion is if you can afford to pay extra, pay it to the creditors. Keep reciepts ect and make sure you document exactly how much you have paid and when. I did this with one of my creditors, then called up the dept management company and requested they remove the dept from my account as it was cleared

kelly

MrsTinks

Personally I'd recommend you go with one of the charities...
Ultimately no matter how nice the debt management companies are then "It's a company's job to make money from you"...
You won't get into trouble over changing who manages it for you. I don't know about Payplan saying you don't earn enough, but could you maybe try either CAB or CCCS and ask their advice too?

Deep_In_Debt

Be careful about paying creditors extra unless you can keep doing it as creditors can get nasty if you pay them extra for a while and then stop.

As others say, go with a not for profit company (I'm with CCCS). They will not charge you and every penny you pay to your DMP goes to clearing your debts thus clearing them more quickly.

Deep_In_Debt

Sorry, just re-read your post - not with it today!! If you have a regular extra amount, you would need to pay the DMP company and they will distribute it amongst your creditors.