Debts

[ginnytaylor]

I have several debts which I am struggling with and have been told that reputable finance companies will consolidate all your debts and you pay what you can afford per month to your creditors. Can anyone advise if they have done this themselves and does it work out?

[CheekyChops]

You don't need to use a 'reputable finance company', they will charge you a percentage and that could go towards repaying your debts.

If you are seriously struggling, you could contact CCCS or PayPlan who will do the same thing for free, they basically set you up on a Debt Management Programme (DMP) where you come to arrangements with your creditors.

Have a look at the CCCS website, they have an online debt remedy that you can try.

[themas]

I assume you are talking about a company which will enter into a Debt Management Plan for you, under which you pay a reduced amount. These companies take one amount from you each month, keep their own fee, and should pass the rest on to your creditors. Unfortunately, in a lot of cases the companies are not entirely reputable and have been known to be very inefficient - sometimes landing the debtor in a worse position than they were in before the arrangement started. Also, as CC says, you do not need to use anyone who charges a fee. As well as CCCS or Payplan you could try your local CAB.

[SMP]

I have a Debt Management PLan (DMP) with the CCCS, they have been great. They are helpful, understanding and non judgmental.