Debt crisis - HELP!!!

If you are so badly in debt you would be far better off using the 1800 to

*reduce* that debt. Anyway, what's to stop *you* negotiating with your creditors to agree a monthly repayment you can manage, as well as leave enough for the basics - utilities food etc

There are no "members of the Office of Fair Trading". They probably have a consumer credit licence, which just about anyone can get.

If it sounds too good to be true, it ....... ..

No problem - better than too little info. !

It's a rip off imo.

Other organisations like PayPlan make no charge to you, although they charge your creditors a cut.

No. No comment on usenet or the web either.

Many dodgy companies use this kind of talk.

They can't be. This is a government organisation, a company can't be a member.

Your suspicions are reasonable imo.

There is an excellent forum for debt issues here - - TMF dealing With Debt board.

Many of the people have been there, done that, & got the T-shirt, so the advice is from people who have a detailed knowledge of the subject. Post on there - they'll know.

More links on my webpage

Best of luck

Daytona

Yes, do not waste time with these so called Debt Management Companies who CHARGE you. As D.A.L has mentioned, use the above comanies for help. Also your local citizens advise bureau will be able to help.

Another company thats offers FREE debt management is PAYPLAN.check their site at

I wish you the best of luck

Sam - don't do it. You will be wasting your money and your time and you could end up in a mess much worse than what you are already.

My advice is to get down to the local Citizens Advice Bureau as soon as possible and make an appointment with a debt counsellor. Alternatively, contact one of the charities that specialise in helping people in debt. A couple of them are here:

All their advice and support is completely impartial and most of all *free*. In all cases (including the CAB) they will help you draw up financial plans that will mean you have the ability to work out your debt problems sensibly and amicably with your creditors.

Please don't be embarrassed or ashamed of talking about your debt problems (you've made the first big step here). The best thing you can do is get it all out in the open and not to try and hide away from it.

"Daytona" wrote

How can they charge the creditors for a "service" which they have not requested?

Sam, let me ask you one question: if they're so good, and so competitive in costs, why do they have to go ambulance-chasing to make business?

I've a huge contempt for companies like that: they may or may not actually help, but they'll gleefully add even more debt to your existing problems. Whether or not that's ethical I leave to you to judge.

It's called preying on the innocent and injured. They want to get in before you get as far as the reputable agencies and free advisors.

D.A.L.'s advice is absolutely right: I don't have a lot more to add to it. Follow it and you won't go too far (or at least too much further) wrong.

Jon

Like everybody else has said, DONT TOUCH THEM WITH A BARGEPOLE!!

You can easily do what they are suggesting at no cost, and perhaps with a bit of free help.

Get the free help, but here are a few ideas which I recall from discussions I have seen and some friends who have been in similar trouble.

Firstly, calculate your total net income per month.

1) Then calculate the things and debts which must be paid each month:

e.g. rent/mortgage, council tax, water rates, electric. Food. Transport to work Etc.

2) Other secured debts, (if you own a home with a mortgage or a car say).

3) Then unsecured debts, personal loans, credit cards, etc.

The idea is to pay the things which MUST be paid, i.e. 1) & 2)

Then split what is left from your net income pro rata in relation to the remaining debts, and write to them explaining that you are in financial difficulty, and can only pay them so much per month - even if this is say £5 per month, rather than £100 per month, tell it like it is. If they dont like it and hassle you tell them you are sorry, but that is all there is. I think if they take you to court, a judge would look favourably upon you as you have made the offer.

The above is only the gist of the way to do it, and some free expert help will streamline it.

I understand that it is possible to have the interest on debts stopped, and only have to repay the capital.

In message , Sam Farmer writes

I appreciate your point but the 1,800 I'm only going to have because they'll supposedly be reducing my outgoings by more than 800 a month. Seemingly the people that are losing here are my creditors as EFS are intending to get them to eventually accept partial settlements and write the rest off. Certainly it's not ethical but at the moment my alternative is facing bankruptcy.

I have tried to renegotiate my monthly payments and all I get are more demands, it seems that they are simply not willing to help and just interested in getting paid. None of them seem to consider that I have other creditors, they all think that I can ignore everyone else and just pay them. They have even used threatening tactics of going to court etc. I have asked my bank for help in the past and although they did help refinance some debt it only served to delay the inevitable. I have been to the CAB in the past and surprisingly found them fairly unhelpful and out of their depth although admittedly the branch was staffed by a couple of elderly gentlemen that really seemed to struggle in dealing with me.

Thanks for all your replies and suggestions of places to go, I really do appreciate all your help and will follow each suggestion up. Once the dust settles I'll post an update with what's happened, assuming I still have internet access!

Cheers :)

A debt as large at 30K cannot be handled alone. If you feel you didn't get a good service from the CAB, then certainly try one of the two charities I suggested in my other post. They *will* help you.

I am afraid to say that in a lot of cases, companies like Eurodebt only serve to extend the repayment term of the debt and not reduce it or get it written off. They *may* be able to negotiate a reduced or 0% APR from your creditors however, that can be a long way off in coming. In the meantime, your debt will simply increase month on month. The result of extending your debt will mean that you will end up paying off your debts for probably longer than you have left on this earth, *beleive me*.

I know all the marketing hype that these companies send out makes their case all very convincing, but I am sure you have got better things to do with

1,800 rather than line the pockets of somebody who is not really going to help you.

Payplan don't charge all creditors fees. Some creditor's sponsor Payplan to give free debt help, this is because some creditors understand that some people find it difficult to speak to their creditors themselves and could go to fee charging debt management companies. Your creditors would rather you get out of debt without paying a montly fee to fee chargers, so some creditors will sponsor the free service. This is how it works, Payplan do not "Charge" creditors as such.

In message , Sam Farmer writes

With respect, you are truly ripe for plucking.

A friend of mine is in a very similar situation, but has achieved the results I mentioned in my previous post.

Your creditors have people who are trained and paid to make you feel as bad as you do about not paying them.

As I understand it, these people DO NOT want to take you to court. If it gets that far, a judge will ask you what you can afford to pay, and probably make them accept it. It may also be at that point that the debt gets frozen and no more interest is added. So..... when they harass you, I think you need to call their bluff, repeat that you can only afford what you can afford, and that they should take you to court and see what the judge orders.

I recall taking someone to court for an unpaid bill of £800. The judge asked the guy what he could afford, and he said £5 per month. The judge effectively told me that I would be happy with that.

Lets say that you pay the £1800, and EFS dont succeed - are you going to be able to sue them for the £1800 - Not a chance!

Thanks! Always nice to know what happens !

Daytona