So many questions about debt

**MrsSkint** · 11th December 2009, 06:23:AM

Re: So many questions about debt

Hi Soulstar

Sorry I'm a bit of a numpty where government legislation is concerned but I can tell you about my experience as far as debt management companies and "settling" loans are concerned.

Long story short - About 4 years ago we were in so much debt that we used a debt management company. We paid them £35 per month to work with the banks on our behalf. They told us that they could "freeze" the interest and that we would only pay a small sum to each of them every month, and that would be the end of it - Easy Peasy! NOT - we were still hounded by the banks, our interest was NOT freezed and the debts just kept growing. Basically we were paying them £35 per month to send a few letters off on our behalf. I didn't know then but there IS a government scheme called CCCS who will do this for free for you. Please don't use DMC's that you have to pay. If you do decided to use one, use the CCCS.

As for "settling" loans - after about 4 months of using a debt management company we were so far in debt that we ended up remortgaging and trying to pay off our loans. We only raised enough to pay off most loans and there were a couple that we "settled". They wrote off the remainder of the debt. However, this shows on your credit file for 6 years. Our credit rating is still dire and we are paying large interest on mortgage, but only for a couple more years then our credit score will be a lot better - we are working towards this.

Some of the guys on this forum will be able to advise you on the more legal issues but I would say don't worry yourself sick about this - it isn't worth it. Get in touch with the loan company, don't ignore them and see what they say first. If you're not happy and decide to go down the road of a debt management plan - us CCCS.

Good Luck x

**Sapphire** · 11th December 2009, 09:29:AM

Re: So many questions about debt

Hiya

If you don't want to go do debt management plans, you can 'do it yourself' using the letters here on this site. I will warn you though it takes commitment and you must be disciplined.
If you did decide on that route just shout and we can help you along the way.
Here have a read of this Letter Templates Re Debt (offer to pay / freeze interest etc) - Legal Beagles and General Debt Forum - Legal Beagles

**Soulstar** · 11th December 2009, 09:37:AM

Re: So many questions about debt

Hi Mrs Skint, thanks for info it's been a big help.
Why I posed the question about DMA is because our closest friends came round to see us last night. They know about our debt problems and they have the same problems themselves. They us a DMA Welcome Solutions. My friend told me they pay this company a fee of £30 a month to keep their creditors at bay and that all their debts will be cleared in two years, this will be the end of the five year period.
I don't think this is the way forward for me, as I hate the thought of giving someone money to send letters that I can send myself. Mine may not be as comprehensive, but so long as the creditors can understand my proposals that's what matters!
Thanks again
Soulstar
------------------------------- merged -------------------------------
Hi Sapphire, seems our posts have crossed lol
I looked through some of the templates last night.
I feel a bit more confident about tackling creditors now that I understand some of my rights and also because I know if I am stuck I can come back here for help and support.
This is a fab forums with Masses of information and supportive people who understand indervidual needs because most have been in the same situation themselves.
I never thought I would talk so openly about my debts (it helps to be anonymous), but boy am I glad I have!
Soulstar

**enaid** · 11th December 2009, 09:44:AM

Re: So many questions about debt

The hardest, but by far the best thing you can do is admit the situation and share it with people who can help.
Just wish we could let everyone know that

**WendyB** · 11th December 2009, 09:54:AM

Re: So many questions about debt

Hi SS

You can sort it all out yourself with help on here, avoid DMCs like the plague! As for writing off debts, some companies will take a much reduced amount insettlement, however you have to be in a position to pay it all in one go. A better way would be to offer small amounts in instalments on a regualr basis to reduce the debt then work towards possibly Full and Final settlements (reduced) later on. We don't, as a site, encourage getting debts written off as a way of avoiding payment for them altogether.

It might help if you filled in the I & E form HERE and posted it up, (remove your personal details first)then we could see more of the situation and advise. If you don't want to post it on an open forum email it to one of the team. Most of us on here have been there, done it, got the teeshirt and sent the postcard (I've got the keyring too I think! lol). Hardest part is getting your head out of the sand, so well done for doing that. You will get sorted in the end, it might not be easy but beleive me as you sort out your finances one by one it's dead satisfying.

**Soulstar** · 11th December 2009, 13:52:PM

Re: So many questions about debt

Thanks Enaid and Wendy.
I to wish I could point people in the right direction (towards these forums), but most of us never talk about personal debt freely with our friends and family :-(

I tried to open the link for I&E, but my AVG won't allow it?
Is this I&E and incomings and earning form? If so I have filled in one of these which I got from the National Debtline web site.

**enaid** · 11th December 2009, 14:09:PM

Re: So many questions about debt

Yes it is Income and Expenditure (ins and outs) see how they balance.

**WendyB** · 11th December 2009, 14:39:PM

Re: So many questions about debt

You could scan in the IE form you have already done? Remove personal details first though.

**maruvian** · 11th December 2009, 14:45:PM

Re: So many questions about debt

Hi Soulstar

It looks like what your talking about in your first post (be debt free in five years) is an IVA. This is ran as an alternative to being made bankrupt and if 75% of your creditors agree to it then it is binding on the rest. I believe that with most IVA's you need to re-mortgage your house after 4 years to help pay some of the creditors.

If you are looking at going down this this line i would speak to CCCS as already stated or National Debtline, they are not out to make money and will give you good advice.

**Soulstar** · 11th December 2009, 19:39:PM

Re: So many questions about debt

I have decided that I am not going to go down the route of IVA's or DMA's.
I really don't like the sound of them.
I am going to try and deal with my creditors myself and failing that I know I have found a strong structure here and with National Debtline to get me through to the next stage.......whatever that may be?

In my eyes, you guys and gals are all stars!

**MrsSkint** · 11th December 2009, 19:50:PM

Re: So many questions about debt

Well done Soulstar and best of luck, you CAN do it and the LB team will be behind you all the way. xxxxxx

**charitynjw** · 11th December 2009, 21:57:PM

Re: So many questions about debt

:clap2::clap2::clap2::clap2::clap2::clap2:

You'll get plenty of support here, Soulstar

**Curlyben** · 11th December 2009, 22:11:PM

Re: So many questions about debt

Here's some light reading to get you started: ~~~ Consumer Credit Agreements - A Guide ~~~~ inc. Letters - Legal Beagles

**MrsSkint** · 11th December 2009, 22:16:PM

Re: So many questions about debt

........failing curleyben's advice - get your uzi out mate xxxxxxxxx

So many questions about debt

So many questions about debt

Comment

Comment

Comment

Comment

Comment

Comment

Comment

Comment

Comment

Comment

Comment

Comment

Comment

Comment

Announcement

MONEY & DEBT

Court Claim ?