DEBT MANAGEMENT COMPANIES should we pay them?

[bub1]

I really dont know if I should post this here not sure where it should go, please feel free to move.

 

What I want to know is:

 

Should you pay a company to pay your creditors for you and of course they take a fee. I had one phone me this morning wasnt really listening and said that I pay them £100 amonth and they take 35 and deal with my creditors - I only have 4 and total amount of debt is just under £3,000.

 

I cant afford to pay £100. I know some free companies that offere this service wont consider me as my debt is small etc.,

 

Should i just carry on sending letters to my companies that I owe with a financial statement and token payment. I have spoken to CCCS and Payplan, and both have advised me to do this.

 

Is this the right way to go, I want to pay off what I owe therefore i am not saying I wont pay just cant pay what they want.

 

Any thoughts would be greatly appreciated.

[PriorityOne]

Personally, I wouldn't touch a debt management company with a barge pole... and certainly not one that asked for a fee for doing something I could better myself.

 

It's a personal decision though and I accept that some people are uncomfortable dealing with their own financial affairs and prefer to hand them over to someone else.

[bub1]

Thanks for your reply.

 

I am going to send the creditors I have a letter and take it from there. I am hoping they will accept as I will be able to up payments as time goes on.

 

bub1

[IdaInFife]

a bit of advice:

 

try and include the payment with the payment proposal and just keep paying hwta you have offered to your timescale:

 

you will get a few huff puff letters but donlt let them increase anything if you cannot afford it

 

ida x

[bub1]

Hi, I do intend to enclose the first payment with my letter and financial statement, and send regular payments on a set day each month of the amount I can afford. CCCS and Payplan told me to send atoken payment with my letter and I will be sending a postal order to each and sending recorded delivery.

 

bub1

[natalie]

I think it depends on your state of mind at the time, and the DMC. About 2 years ago I went to a DMC because I wasnt in a position to deal with it all myself. They took 5% of my monthly payment and dealt with everything.

 

When I decided to do it all myself again a few months ago they were great, have talked me through all of the accounts and have offered advice on what to do next.

 

I think if you can do it yourself, do! But if you dont feel strong enough to deal with creditors at the moment, then as long as its a reputable company there is nothing wrong with going to a DMC.

[bub1]

Thing is the DMC wanted £100 amonth to help which £35 is theirs. I just havent got £100.

 

But I am willing to try and go it alone. I see it this way, They cant have what I havent got but they can have what I have got no matter how small.

 

Also, if at some stage I can pay more I will.

 

Thanks for all of your advice.

 

bub1

[natalie]

My dmc worked out what I could afford to pay and that was what I paid. I think doing it yourself is the best option if you can, but if you cant, dont worry just make sure you find a good dmc.

[bub1]

Hi Natalie,

 

Alot of companies probably wont do a DMP for me because my debt is so small compared to others.

 

Bit wary of who is a good DMP, can you pm me with who you were with, please.

 

Also, any idea when I send letters how long they take to get back to you.

 

Bub1

[RIAZZIG]

Hi Natalie,

 

Alot of companies probably wont do a DMP for me because my debt is so small compared to others.

 

Bit wary of who is a good DMP, can you pm me with who you were with, please.

 

Also, any idea when I send letters how long they take to get back to you.

 

Bub1

 

Finance Inc are a company I used, they were brilliant for me.

[natalie]

How many creditors do you owe? and how much is the total debt.

 

If its only a small amount with the right help here you might be able to get the lot written off.

[natalie]

Sorry just reread header and have seen

 

4 creditors and under £3k.

 

I think you will be able to do this yourself without too much of a problem.

 

Have you had any charges on any of these accounts?

[bub1]

Answer to that Natalie is yes, late charges etc., the usual.

 

Bub1

[natalie]

Well then the first thing you need to do is get these refunded. Do you keep all your statements? If not then I would send them a SAR, and add up the unlawful charges.

 

This will bring your debt down even further, and leave you in an even better position to negotiate getting the debt written off.

[bub1]

Whereabouts is that SAR letter then Natalie.

 

Bub1

[bub1]

I Have all my statements.

 

bub1

[natalie]

Okay, if you add up all your charges over the last 6 years, then I would write a letter to the OC saying that they owe you this amount in charges and you are considering taking legal action to get it repaid with interest, however if they are willing to write off the remaining debt and remove any adverse records from your credit file that you would be willing to accept that as full and final settlement.

[PriorityOne]

Are your accounts still with orignal creditors or with debt collectors now? Who are they with?

[bub1]

Still with original creditors.

 

bub1

[bub1]

Forgot to mention, I have only defaulted on the debts I have for 2 months.

 

bub1