i am battling with a few creditors at the moment, most of them are playing hard ball, even worse are the collection agencies - there's no haggling with these guys at all.
what I can't figure out is how those debt management companies claim to be able to freeze the debt and any interest that might be acrued and in some cases get 90% of the debt written off. There must be a downside to their customers somewhere??
does it affect your credit score if you get involved with these people?
I`m no finance expert, but if you look at the usually not-so-small small print they want you to own your own house, and are obviously trying to get people to swap unsecured debt for secured debt.
This is not a good idea.
Essentially, you end up paying the debt over an extended period, much like a mortgage.
A good place to start learning how to cope with (and prioritise) debt is The Mottley Fool
Your best bet if you have debt problems is to head straight for a citizens advice bureau (CAB). They will liaise with your creditors on your behalf, and will come up with a debt management plan so you can repay your debts and still have money to live on.
Don't *EVER* go to those debt management companies who claim they can get
90% of more of your debt written off. Not only will they charge you a huge fee for doing work which you can get from the CAB for free, in a huge number of cases, they don't get your debt written off, but reduce your repayments, so a debt which could normally take a few years to clear, will take an eternity.BeanSmart website is not affiliated with any of the manufacturers or service providers discussed here. All logos and trade names are the property of their respective owners.