are debt management companies legit?

[jenny6165]

Hi there,

wonder if anyone can help me.

My partner has about £18,000 worth of debt, a few credit cards and a loan basically, as well as some bank overdrafts.

 

we have been looking in the 'debt matters' advert on tv who claim to be able to use government legislation to wipe the debt you cant pay and set an affordable amount.

 

Are these companies legit, or is it all a load of rubbish?

 

does anyone know a good way to get rid of this debt short of declaring bankruptsy? (this isnt a good option for me since i own a house with him).

 

Im sure i read somewhere about asking for the signed agreement and if they cant provide it u can wipe the debt. is this right? or is there more to it than that?

[gizmo111]

Hi there,

wonder if anyone can help me.

My partner has about £18,000 worth of debt, a few credit cards and a loan basically, as well as some bank overdrafts.

 

we have been looking in the 'debt matters' advert on tv who claim to be able to use government legislation to wipe the debt you cant pay and set an affordable amount.

 

Are these companies legit, or is it all a load of rubbish?

 

They are legit, but they are basically IVA factories, an option which may not be right for your partner.

 

 

does anyone know a good way to get rid of this debt short of declaring bankruptsy? (this isnt a good option for me since i own a house with him).

 

Your equity in the house wouldn't be affected. There is no easy way to get out of debt, you need to start by drawing up a budget including all your outgoings and then see how much you have left to throw at the debts if you have a surplus. if there is no surplus or very little then you need to contact the creditors and make an offer. it may be that BR or IVA is your only option.

Also if these debts are in arrears then they are likely to have had charges added and claiming these back will reduce the amount owing.

 

have a read here for more information.

 

Im sure i read somewhere about asking for the signed agreement and if they cant provide it u can wipe the debt. is this right? or is there more to it than that?

 

You can request the agreement under the CCA 1974, but at the end of the day you spent the money and you need to make arrangements to pay it back. CAG does not condone debt avoidance.

[jenny6165]

whats an IVA factory?

 

it seems the debt management people are a good option if they arent just frauding you if you get me.

 

it means they can deal with making the agreements with the companies we are debted to, and we just pay one company

[Zamzara]

This is anecdotal and doesn't apply to all of them, but a friend of mine joined with one of these companies and got ripped off. They claimed to be managing his repayments but after two months it was clear they were keeping most of the money.

 

The Citizen's Advice Bureau offer a service like this, with specialist staff, and it is totally free. At least if they can't help you have nothing to lose.

[gizmo111]

whats an IVA factory?

 

 

A company that will recommend that you sign up to a IVA weather it is suitable for you or not as they get a high fee for proposing and managing your IVA.

 

it seems the debt management people are a good option if they arent just frauding you if you get me.

 

it means they can deal with making the agreements with the companies we are debted to, and we just pay one company

 

They don't fruaud you they just charge, for something that you could either do yourself, or get free from one of the organsiations that I gave you the link to.

DMP and IVA's are only suitable if you cannot meet your minimum payments.

[gyzmo]

The only difference between what a debt management company and, say, citizens advice do is the cost.

 

Trading Standards advise that they be avoided in most cases.

[hisholinessthepope]

Go to National Debtline National Debtline, for FREE CONFIDENTIAL and INDEPENDENT ADVICE call 0808 808 4000

 

They will probably put you in touch with payplan or cccs. Both are FREE services!

[demon_x_slash]

Please don't fall for these vultures. They prey on people who are seriously worried and in need of real help, charge them a fortune for doing so, and there's no guarantee that all your creditors will agree to deal with them, so you could end up dealing with most of them anyway. The 'government legislation' is no big secret, even though their adverts make out that it is - go to the Debt forums on here and look up "CCA request" and have a read; it's all there.