Debt coming out of our ears!

[christina1612]

Hi ladies

Please don't judge me based in this but I really need some advice!

My and my OH are in tons of debt for various things and we are considering contacting a debt consolidation company to merge it all together, but we do not know anyone who has ever used one.

Does anyone in the UK have experience with this?

 

[Rainbow82]

I don't personally have any experience but my OH does. I think initially the consolidation loan helped but the repayments were quite high because of the level of debt and a financial emergency meant not being able to afford repayments for a few months. OH did finance management then whuch was apparently helpful, OH had been on it 18 months when we met, and tge company set up a couple accounts, one was for wages etc to go into then the second was what spending money after bills had been paid went into, thus really worked for OH. Guess what I'm saying I'd if you go for consolidation loan make sure you can afford the repayments but if you can't get approved for a loan for any reason don't be sfraid to look into the alternatives.

 

[RubyLouise]

Contact a charity called stepchange. Its a uk registered charity. I found all the details on the money saving expert forum. I've entered a debt management program. I pay a monthly amount to them ( no extra fee because they are charity) and life has been so much better since xx

 

[Pandora11]

You know there's a debt forum on moneysaving expert where people seem very helpful, you should try there.

 

[leelee]

www.moneysavingexpert.com should be your first port of call. There are organisations like the one mentioned above that don't charge so don't pick one that does. You will get great support on that forum.

 

[suzib76]

Don't do it, consolidation is a bad idea. Taking on more debt is the last thing you want to do. Get in touch with some impartial free debt advice people and they will help you move forward, but definiltely don't borrow more money

 

[aimee-lou]

CCCS
https://www.stepchange.org/

These are the best people to speak to.

 

[christina1612]

Thanks ladies, no we weren't planning on taking any loans on, we were looking at the companies that merge all your debt together so you can make one payment and wipe all the interest. Ill definitely look into the money saving expert forum and stepchange.

 

[buttons1]

I wouldn't consolidate if you can help it as they add on soooo much interest and yo will be repaying for a long time. You would be better off sitting down writing to all the companies you owe to and setting up payment plans for what you can afford. You could also speak o citizen advice as there is some legislation that states you can have some debt written off if you can't afford to pay so might qualify for something like that

 

[Flowers Jasmn]

Debt consolidation works because it gives a common approach to all the debts. You no longer have to worry about receiving phone calls from so many debtors. More so the debtors will be forced to deal with the debt consolidation company . This removes pressure from you and allows you to map out strategies that can help you pay the debts comfortably. It is also possible for the debt company to renegotiate the interest payable depending on how heavy you are in debts. This may reduce the final a mount of money you pay.

 

[jem-jem13]

Hi ladies

Please don't judge me based in this but I really need some advice!

My and my OH are in tons of debt for various things and we are considering contacting a debt consolidation company to merge it all together, but we do not know anyone who has ever used one.

Does anyone in the UK have experience with this?

Hi Christian,

I can totally understand where you are coming from. I too am in debt. But having spoke to a debt charity called step change I am now a lot happier & finally sorting my finances out. They will go though who you owe money too/how much you owe. How much your outgoings/incomings are & work out what you actually can afford to pay back without being totally broke.
They were amazing and would defiantly recommend to anybody for help!
So please take the plunge & get in contact. I can tell you now you will feel so much better just after that phone call & once you get confirmation from your creditors they have accepted the plan it's a HUGE relief!

good luck Jem x

 

[vegazbaby]

Hello


Debt advisors wont consolidate your finances or wipe interest but they will set up an arrangement where you pay one monthly payment to them and they will distribute your money to your creditors according to the balances that you owe, ie the higher the balance the more money that creditor receive

most creditors will freeze interest,and with a financial statement to prove your hardship will accept as little as £1 per month of course the downside to this is that you will end up with defaulted debts on your credit file, accounts may escalate to CCJs etc,

you can try to challenge any debts with a sars request, as some people have got themselves debts written off as the banks have no evidence of the credit agreement and there are ways to look into it. (i personally dont agree with this i think if you spent it you should pay it back) if you want to read up on this go to money saving expert

you also have the option to explore any misold ppi, which you may have on your accounts, dont go through a firm as they charge 25% plus vat, i managed to get refunds on debts from years back as they miss sold it to me and got about £2000 in total.

i would recommend step change or pay plan, both free services government backed. dont go to a fee charging one my sister did and ended up owing £400 more 3 months down the line than she did before she joined them, i spend a day on a form and got interest frozen on everything and set up plans that she can afford to pay

also if your accounts to escalate to debt collection, keep your plan in place for as long as possible as once you are back on your feet you should be able to get discounts on your debts to clear them, i had that that years ago i had a debt that they halved if i cleared it !

hope this helps , you can do all this yourself just send a letter to each creditor with a financial statement which you can find on CAB website make a payment offer agree a repayment date and ask them to confirm that they will stop further interest, or just go to step change or payplan
good luck

i work in debt collection and recently set up my sisters plan for her, if you need any help message me