Companies that help manage debt?

Ah you've got the wrong end of the stick. Nobody said everyone can manage their own debts. Some may not be able to. But their must be some people who do use them who could have probably avoided it. No ones making sweeping statements.

And what I said wasn't wrong or judgemental. The companies are indeed taking a huge cut if the figures you stated are similar to the others, and as a consequence they are making a killing from it, otherwise they wouldn't be around...all I'm saying.

Originally Posted by thulfi

Ah you've got the wrong end of the stick. Nobody said everyone can manage their own debts. Some may not be able to. But their must be some people who do use them who could have probably avoided it. No ones making sweeping statements.

And what I said wasn't wrong or judgemental. The companies are indeed taking a huge cut if the figures you stated are similar to the others, and as a consequence they are making a killing from it, otherwise they wouldn't be around...all I'm saying.

Sorry Thulfi but my comments weren`t directed at you... more to those who consider people "stupid" for having got into debt

Ah sorry, my bad.

Originally Posted by thulfi

Ah sorry, my bad.

Debt Management Companies are just one option. There are more and more charities that do offer to help those in debt.

Getting a creditor to bend on the terms of your debt requires a degree of collective bargaining. Many CC companies would outright refuse a request from a customer to 're-arrange' their debt - debt management companies know who to speak to, what terms can be bargained and keep some of the repayment for themselves. The creditors get something back (as opposed to perhaps nothing), the debt management companies get to keep a cut, and their customers pay for some peace of mind and a helping hand as they climb out of a hole.

Beware though: 're-arranging' your debt like this is usually done in the form of an 'IVA' (Individual Voluntary Arrangement) and a record of this will remain on your credit record long after you've repaid your debts - making it much more costly (if at all possible) to get credit again for some time.

I've seen successful people come unstuck very quickly and land themselves in plenty of 'debt hurt' through little fault of their own... lose a job, partner leaves, illness arrives etc. Lady Luck can be very cruel.

[timwilky]

I am sorry that you think me harsh in my beliefs.

Debt causes nothing but misery, can lead to mental illness, crime and even suicide.

Of course everyone at some point in their lives has carried an element of personal debt. Even if for a mortgage. I have seen 20 years ago my brother loose his house because he can no longer afford it. The first I knew of his problems was when he turned up at my house with his wife and processions in a van saying can we please stay with you.

I am currently paying my sons mortgage as he has had no work for the past 4 months and not entitled to any help. I have paid off the bailiffs because my younger daughter would rather buy clothes than pay her council tax.

People get into debt in many ways. For the stupid it is the buy now pay one day culture, for others it is a well paid job disappearing overnight. However, these are factors that should have been taken into consideration when taking on debt.

Thereafter, your approach to how you get out of it is important. Don't delay, talk to your creditors, agree repayment plans. move heavy credit cards to 1 year interest free and be a card tart. whilst you are managing your debt, being seen to reduce it is all positive.

Doing nothing about debt to the point you need the help of debt management companies, IVAs etc is stupid and I have no hesitation in telling fools who risk the roof over their heads for the sake of a holiday, car, clothes etc. that in my opinion they have been stupid.

Originally Posted by maviczap

There are plenty of stupid people out there who will go down this route, but then they're the type to buy everything on their credit cards in the first place. Buy now, think about paying for it later

Not everybody in debt is stupid!! I never set out to be bringing up 3 children on state benefits, but unfortunately thats where i find myself.
The father of my kids earns a good wage but is too selfish to pay up any decent monthly amount for them and if i force the issue the government will just reduce what they pay me accordingly anyway. So i am totally reliant upon state benefits.

Out of the money paid to me for the children i have to find £200 a month on top of my housing benefit just to pay the rent, leaving barely enough for the bills. So what am i supposed to do, i have no credit cards, my overdraft is maxxed out, i have outstanding debts from my marriage and 3 growing kids.

As an example, my daughter needs new school trousers and school shoes to go back to school next week, she hasnt mistreated those she had, but she just keeps growing. Having already borrowed money to feed them this week (which i need to repay next month leaving next months budget tight before ive even got there) my only method of sourcing these was a store card. Now i consider myself an intelligent, responsible adult, but find myself in an impossible position.

The first thing i do every morning is log into my bank account to check activity and i have software i use to budget 3 months in advance, i have become a master at juggling money, i know when every penny is coming in, and when it will be going out.

Unfortunately there are too many people in my situation and i can see that for some, these debt companies may be of help. I am trying my best to remain in contact with those i owe and have set up repayment plans direct with them as i am determined to keep a good credit rating, on the off chance that one day i just might be in a position to apply for a mortgage myself. Unfortunately thats not in the foreseeable future as the government offer me very little incentive to return to work. I am in a difficult situation, it is a constant battle to keep my head above water and sometimes i need to get involved with creditors, this does not make me a stupid person and if one day i decide that one of these companies may be able to improve my monthly financial situation to free up valuable cash for the kids then i may need to use one, but it will be a responsible, well researched decision and not one made out of stupidity.

Sorry for the rant, this is a particularly touchy subject for me at the moment

Unfortunately Kelly there`s more and more people finding themselves in your situation and I know you`re not looking for sympathy, it does actually help at times to let off steam x

I do feel for you and I can`t offer any advice other than despite times being hard you seem to have a good head on your shoulders and are acting really responsibly and credit to you for that.

I hope your situation improves and one day when the kids are grown you`ll look back and think "christ! I don`t know how I coped and managed but I did" xxx

[Dave20046]

I would look to the government/charities rather than on eof these 'debt consolidation companies' or whatever - not that I've looked into it at all just hear them tens of times a week via the radio and sound proper scammy.

Originally Posted by kellyjo

Not everybody in debt is stupid!! I never set out to be bringing up 3 children on state benefits, but unfortunately thats where i find myself.
The father of my kids earns a good wage but is too selfish to pay up any decent monthly amount for them and if i force the issue the government will just reduce what they pay me accordingly anyway. So i am totally reliant upon state benefits.

Out of the money paid to me for the children i have to find £200 a month on top of my housing benefit just to pay the rent, leaving barely enough for the bills. So what am i supposed to do, i have no credit cards, my overdraft is maxxed out, i have outstanding debts from my marriage and 3 growing kids.

As an example, my daughter needs new school trousers and school shoes to go back to school next week, she hasnt mistreated those she had, but she just keeps growing. Having already borrowed money to feed them this week (which i need to repay next month leaving next months budget tight before ive even got there) my only method of sourcing these was a store card. Now i consider myself an intelligent, responsible adult, but find myself in an impossible position.

The first thing i do every morning is log into my bank account to check activity and i have software i use to budget 3 months in advance, i have become a master at juggling money, i know when every penny is coming in, and when it will be going out.

Unfortunately there are too many people in my situation and i can see that for some, these debt companies may be of help. I am trying my best to remain in contact with those i owe and have set up repayment plans direct with them as i am determined to keep a good credit rating, on the off chance that one day i just might be in a position to apply for a mortgage myself. Unfortunately thats not in the foreseeable future as the government offer me very little incentive to return to work. I am in a difficult situation, it is a constant battle to keep my head above water and sometimes i need to get involved with creditors, this does not make me a stupid person and if one day i decide that one of these companies may be able to improve my monthly financial situation to free up valuable cash for the kids then i may need to use one, but it will be a responsible, well researched decision and not one made out of stupidity.

Sorry for the rant, this is a particularly touchy subject for me at the moment

Women like this (or the likes of the sun!) don't help paint a good picture of single mums I guess.

I offered one of my staff (a single mum) more hours. She worked out that the extra money she would earn would mean she received less benefit to the point where she'd be working more hours for the same money??!!!

She declined my offer. Can't say I'd blame her. Sorry, gone a bit off-thread here!! She was great though - some of my best staff have been single Mum's.