Debt Consolidation?

[Purdy1980]

Is Debt Consolidation a good idea?

Would like to approach one of these companies to see if they could help me but not sure they are all they say they are.

Has anyone used one that was good?

[labman]

Re: Debt Consolidation?

Can you explain a little bit more about your current situation and then we can see what is best as there may be other options. :beagle:

[Purdy1980]

Re: Debt Consolidation?

I would estimate I owe no more than £5000.
A credit card with about £2,500
A council tax debt of £372 (I think, I have a thread going on this as bailiffs involved)
Various other store cards/debt companies chasing old catalogues

Would like to just hand it over to them to deal with but not sure. There is also a company called 'SWAN or SWANS' I think that could help as they are helping a friend but think they resort to IVAs or DROs

[Bill-K]

Re: Debt Consolidation?

Hi and welcome to you, Purdy. If you can get an appreciably lower interest rate on a consolidation loan, than the rate(s) you are currently paying,thenit may be worth considering. But IVA's and DMP's are also a viable option. As Labman says, it all depends on your own circs.

A question I always ask is - did any of the card accounts have PPI on them ? If so, then it may be possible to reclaim this and reduce the debt.

[Purdy1980]

Re: Debt Consolidation?

Thanks Bill-K

I had thought about looking at the PPI on the Credit Card - I think I got it in about 2003/2004 with the Halifax but I don't have any of the details anymore and didn't really know where to start?

[Hurricane Puffrose]

Re: Debt Consolidation?

Hey Purdy hun!

My husband has a DMP, the debts were spiralling out of control and we just had to get help.
We have a wonderful company, we can afford our first holiday in 10 years! Let people like Bill (who know what they are talking about.. unlike me) talk you through all the pros and cons, and if you decide afterwards that you still want a DMP please pm me and I will forward you their details..

Again, let the others look in to things first!

[Bill-K]

Re: Debt Consolidation?

I'm with Puff on this. I've done both DMP and IVA in my time, and in my meagre experience of both, I would say this:

The DMP was good, in that it stopped interest and charges from adding to the spiral - it literally 'froze' the debt. It didn't leave us with a completely shredded credit rating, either.

The IVA was more drastic (a 'Trust Deed,' in our case - essentially the same, but in a kilt). You lose your credit status for a few years, and in my case - I had a bunch of debts (5-figures worth), BUT not much in assets. If you've got two cars, you may lose one. A caravan, a huge plasma screen with surround sound and popcorn dispenser, etc. etc.

In either case, you should do as much research as possible - but personal recommendation such as Puff's is worth a helluva lot. There are plenty of heartless crooks out there - our valiant warrior Tuttsi will tell you. ( Some bedtime reading here: I was called today 01535 358094 - Legal Beagles Consumer Forum :beagle: )

Regarding PPI reclaiming, have a read around the PPI section (PPI tab at top of page) - but if you don't have your records, then you should send them a Data Subject Access Request (DSAR). It costs £10, but should get you copies of ALL relevant data they hold on you. There's a useful thread here, but a more comprehensive DSAR letter could be used. I've lost the link for it, but here's a copy:

"
Dear Sir/Madam
Data Protection Act 1998 Subject Access Request

Please would you kindly provide full and complete copies of any and all data you hold which relates to me and my entire history with your company. I have enclosed the statutory maximum of £10.

For the avoidance of doubt, take note that the enclosed cheque/Postal Order is payment for the fee relating to my Subject Access Request only and not a payment of any other kind or to be used for any other purpose. If you do not require a fee in order to process my Subject Access Request then kindly return or destroy my cheque / PO.
/B]
For your convenience I have detailed below a list of what I require, although this is not an exhaustive list by any means and is just an example of some of the information I require with regard to any accounts I may have had or may still have with your company.

1. Computer screen notes relating to the conduct of my account
2. Computer screen notes relating to transactions that have gone through my account
3. Internal messages or notes relating to the conduct of my account
4. Internal messages or notes relating to transactions that have gone through my account
5. Recordings of any telephone conversations, whether internal or external, relating to my account
6. Copies of any e-mail's, or other electronic communications, whether internal or external, relating my account
7. Copies of letters relating to my account
8. All information relating to litigation or pre-litigation that has taken place on my account
9. A detailed statement of account showing a breakdown of all costs charged, showing in each case the reason for the cost and the actual cost against that item
10. Copies of all reviews conducted relating to my account
11. Copies of all other paperwork relating to my account.
12. Copies of any and all documentation issued to me or left at my property regarding my account
I trust that the above is clear and should you be in any doubt as to your obligations as a Data Controller, then I would advise that you consult your corporate counsel.

As detailed above, I have enclosed the statutory maximum fee of £10. You have 40 days in which to comply.

If there is specific information which you require in order to satisfy yourself as to my identity, please let me know by return. However, please note that the above address is the one to which all previous correspondence has been issued.

Yours faithfully

"

[Stock123]

Re: Debt Consolidation?

Debt consolidation is nothing more than a "con" because you think you've done something about the debt problem. The debt is still there, as are the habits that caused it – you just moved it! You can't borrow your way out of debt. You can't get out of a hole by digging out the bottom. True debt help is not quick or easy.

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