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Posted by: Ria S on 2010-05-17, 15:35:18
In the past I used a Debt Management company and it worked really well for me. It took me less than 5 years to pay off debts of £13,000. I know I was paying for someone else to sort it all out for me (they charged me 15% of the monthly repayment - EG: if I paid £200, they took £30 and split the remaining £170 between my creditors). You have to find a reputable company and you also need to do a bit of work yourself as you have to write to your creditors giving them permission to deal with the DCM company. But at least you know how much money is going out each month and you are paying 1 payment. Pros You are paying out one payment per month In some cases the debt management company can have your debts reduced or the interest frozen You don't get anymore scaryphone callss or letters - or if you do, you refer them to your debt management company You can pay this off at an amount which is less than if you took out a loan toconsolidatee yourdebtt Cons You are paying for the company to manage your debts You have to include all your debts - even if you have some that you are managing OK You cannot getany moree credit until you are no longer using the DCM's services Your credit rating will be affected as you are in effect defaulting on your repayments You will still have to contact your creditors in the first instance You have to draw up an accurate budget of your incomings and outgoings and any remaining money will have to go to your debt management programme. However, you can also do this FREE with the help of the national debt helpline, you will need to liaise with all your creditors yourself and pay them all separately, but they are supportive and tell you what you need to do. It is up to you which way you think will be the easiest |
