Debt Reverse (Safe Money Ltd) DMP concerns

[Jwww]

Hello out there, thanks for maintaining such a great forum

- i was wondering if anyone would be able to lend their wisdom to my predicament.

 

I recently found myself jobless and juggling a number of payday loans

- in scrambling for work and having no sociable hours to work with my payday loan providers

 

i approached Debt Reverse - and established a DMP - the first payment has yet to be made but i'm hesitant to send it

as despite DebtRev' describing a 'good working relationship' with my payday lenders,

i have still received incessant contact from them ( i'm told this is all normal ahead of the first payments being made as part of the DMP

- and i do expect something of it from the payday sharks

- but the additional costs i've incurred in this period seem ludicrous)

 

i have even had to send a token payment outside of the DMP myself to one lender? as instructed by DebtRev'..

 

. They are otherwise very curtious and allways at the other end of the phone

but ahead of making my first payment to them i was looking for some insight from you guys and girls,

i find it hard to place stock in 5 star reviews i find online...

Many thanks for any info you can provide!

[i hate bailiffs]

It looks like a fee charging debt management company?

 

you will be better using a free service such as CCCS now called stepchange

 

i used a fee charging company in the past and it cost me made things worse they were happy for balances in increase each month

You can do it yourself but i would suggest to use the free company to start off with

 

Welcome to CAG

[Wintry]

Hello out there, thanks for maintaining such a great forum - i was wondering if anyone would be able to lend their wisdom to my predicament.

 

I recently found myself jobless and juggling a number of payday loans - in scrambling for work and having no sociable hours to work with my payday loan providers i approached Debt Reverse - and established a DMP - the first payment has yet to be made but i'm hesitant to send it as despite DebtRev' describing a 'good working relationship' with my payday lenders, i have still recieved incessant contact from them ( i'm told this is all normal ahead of the first payments being made as part of the DMP - and i do expect something of it from the payday sharks - but the additional costs i've incurred in this period seem ludicrous) i have even had to send a token payment outside of the DMP myself to one lender? as instructed by DebtRev'... They are otherwise very curtious and allways at the other end of the phone but ahead of making my first payment to them i was looking for some insight from you guys and girls, i find it hard to place stock in 5 star reviews i find online...

Many thanks for any info you can provide!

 

Hi

 

Welcome to the forum

 

Have you checked out the fees this company may charge with regard to up front fees / the first one, two or three months payments and monthly percentages & minumum amounts etc

 

Are the payday loans your only debts?

 

Have you been advised on all your options?

 

The advantages of going with a free DMP provider are obvious, trouble is some of them may not take you on depending on your circumstances and their entry criteria such as minimum amount of debt and disposable income etc

 

Any chance of putting up your Statement of Affairs as this will help.

[Jwww]

Hello! Thank you for your help so far -

I have contacted Stepchange for advice, they seem a wonderful charity but will only be free to start assessing me come the 7th of January.

 

Debt Reverse do charge, where there are no upfront fees as such, the first two payments i make as part of their suggested DMP (£100 x 2) count as a 'set up fee' - and this money will not go towards my debt - although they should be working to freeze my interest, contact creditors and such like meanwhile. I have in reality only gone into more debt with the lenders since they began working on my behalf (and i have forwarded most corrospondence to them) i've not even made my first payment within the plan, which is due on the 31st of December. Beyond that they extract some 16% fee from each payment, which is set at £100 monthly. The payday loans are my only unstable debts, i have no credit cards although im still in a graduate overdraft, bills may soon become a problem but are thankfully being fronted by my housemate as they stand. I first contacted them with my debts sitting at just over £3000 - spread over 6 small lenders - this has gone up!

 

Im not quite sure what you would have me cover in a statement of affairs?

I'm tied to a small 2 bedroom house, zero dependants and zero useful assets - i've been forced to claim housing benefit that now covers my rent and similarly my council tax.

And recieve a very small self employed income as i try to find employment again in the new year. I will happily provide you with a broader spread of info if its helpful?

 

Where i deferred the job of dealing with and contacting with the loan sharks to DebtRev' , and am now questioning whether to start paying the plan (or rather them) on the 31st (if im not already bound) , im worried they will somehow make the situation worse again if i have to go through another handover. Saying that - 2 days out and a month later they have still not recieved a response from all the loan companies. I apologise if im blabbering , hopefully you can mold me into something more concise hoho!

Many thanks again.

[i hate bailiffs]

What ever way you tackle this is up to you but the two monthly payments as set up fees will make you in arrears with all the people you owe money to

interest and charges will add to the balance

 

plus there monthly fee less going off the debt they are making a fortune out of peoples miss fortune!

 

I am not a fan of fee charging debt management as have been there is the pasts it done me no favors

 

Having said that i am sure it works for some people

hopefully others will be along to advise you better

[Bazooka Boo]

DO NOT entertain this outfit, any firm that charges you for their services regarding debts is NOT looking out for your best interests.

 

They do absolutely nothing, they will simply fleece you blind.

Drop them, you will be much better dealing with this on your own, and a lot more competent!

[Wintry]

Hello! Thank you for your help so far -

I have contacted Stepchange for advice, they seem a wonderful charity but will only be free to start assessing me come the 7th of January.

 

Debt Reverse do charge, where there are no upfront fees as such, the first two payments i make as part of their suggested DMP (£100 x 2) count as a 'set up fee' - and this money will not go towards my debt - although they should be working to freeze my interest, contact creditors and such like meanwhile. I have in reality only gone into more debt with the lenders since they began working on my behalf (and i have forwarded most corrospondence to them) i've not even made my first payment within the plan, which is due on the 31st of December. Beyond that they extract some 16% fee from each payment, which is set at £100 monthly. The payday loans are my only unstable debts, i have no credit cards although im still in a graduate overdraft, bills may soon become a problem but are thankfully being fronted by my housemate as they stand. I first contacted them with my debts sitting at just over £3000 - spread over 6 small lenders - this has gone up!

 

Im not quite sure what you would have me cover in a statement of affairs?

I'm tied to a small 2 bedroom house, zero dependants and zero useful assets - i've been forced to claim housing benefit that now covers my rent and similarly my council tax.

And recieve a very small self employed income as i try to find employment again in the new year. I will happily provide you with a broader spread of info if its helpful?

 

Where i deferred the job of dealing with and contacting with the loan sharks to DebtRev' , and am now questioning whether to start paying the plan (or rather them) on the 31st (if im not already bound) , im worried they will somehow make the situation worse again if i have to go through another handover. Saying that - 2 days out and a month later they have still not recieved a response from all the loan companies. I apologise if im blabbering , hopefully you can mold me into something more concise hoho!

Many thanks again.

 

Hi

 

From what you have put, it may be that finding £100 a month will be difficult on your current income.

 

Taking the first two months payments in fees means that your creditors basically wont get nothing until the 3rd month and then it will be minus the Debt Management companies fees (have you checked that this company have not also got a minumum amount they take in fees which in your case could work out much higher than the 16% you have quoted)

 

Check the Debt Management Companies terms and conditions for the other things you mention.

 

Im not sure any of the free Debt Management Plan providers will touch you other than send you out some self help materials due to the level of your debts and disposable income if based on their trigger figure allowances, the only way to find out for sure is to contact them - Payplan, Stepchange and maybe Christians Against Charity.

 

I know what you have put, but maybe having a go at self managing would be worth further serious consideration.

 

You may have other options depending on your full circumstances and any future aspirations etc, its a small amount of debt in a way to look at a formal solution and given your future so to speak but your decisions at the end of the day, just make sure you fully understand everything.

 

It might be well worth having a look at the charity links below if you have not done already for some pointers, including information on self help etc

 

http://mymoney.nedcab.org.uk/moneyadvice/

 

http://mymoney.nedcab.org.uk/moneyadvice/dmptour.asp (online self help DMP example)

 

https://www.mymoneysteps.org/

 

http://www.stepchange.org/

 

Keep us updated if you can.

 

Best Wishes

Edited January 2, 2013 by Wintry