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| The independent answer to your debt problems | login join |
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belkin
| 03-05-2007 09:03 AM |
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Joined: 03 May 2007 Posts: 3 | hi all newbie so please go easy. me and my partner are in a little debt and after watching the countless debt adverts on tv, most of them dont seem to indicate that there is a cost for their help. do they charge you for their service or is it just built in to the repayments you make. if there is a cost any ideas how you can find this out. thanks |
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DW Jon
| 03-05-2007 09:56 AM |
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Joined: 03 May 2007 Posts: 1 | Hey Belkin, Having had previous experience with this, you need to be careful but have a look at the Debt Consolidation and Debt Management sections of this site. Debt consolidation is nothing more than borrowing money to pay off your existing debts thereby consolidating your debts into one loan. Most comapnies will not charge you for this as they make their money by you paying the loan back. Debt Management on the other hand is someone that will help you to reorganise your loans, spending etc and will help you to freeze interest on credit cards or organise smaller payments for longer periods for you. Some companies will charge you for this service and some will not so don't be afraid to ask before you use their services. You're best best bet is to fill out the Statement of Affairs on this site and then the Debtwatchdog lot will guide you in the right direction, they're all really helpful and know their stuff! Good luck Belkin!! |
| DW George | 03-05-2007 10:52 AM |
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Joined: 01 May 2007 Posts: 148 My Profile | Just to add to John's comments. Secured loans should only considered if you have a poor credit rating and find it difficult getting credit. In considering whether to take out a secured loan make sure you fully understand the calculations and compare them to other forms of borrowing. If you fail to keep up repayments you could lose your house. Also remember that interest rates are no fixed so ask yourself the question can I afford the repayments if interests rate go up? |
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belkin
| 04-05-2007 12:00 PM |
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Joined: 03 May 2007 Posts: 3 | what sort of prices are considered the norm for debt management. debt consolidation has always interested me from the point of view that I would have all my debt in one place and wouldn't have to try and manage the different companies we are dealing with but I cant help but feel im just taking out another big loan. im not sure i understood you dw george about the secured loans part, what does that apply too? belkin |
| DW George | 04-05-2007 01:47 PM |
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Joined: 01 May 2007 Posts: 148 My Profile | Belkin You should only consider taking out a secured loan if it reduces your monthly repayment and it's paying off more expensive debts. Secured loans are really only suitable for those who are finding it difficult to get loans elsewhere. (see my article on checking your credit rating) If you are considering debt management there are two types of companies to consider. Free ones and the ones which charge a fee. You should first consider the free companies, if they can't operate to your time-scale look at the fee charging companies. Typically they charge a set-up fee which can vary and a monthly management fee of around 17.625% of the monthly payments. hope this helps George |
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belkin
| 04-05-2007 04:51 PM |
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Joined: 03 May 2007 Posts: 3 | thanks george, my credit rating isn't the best going by past experience. I will take your advice about debt management though. just kinda hard to see light at end of the tunnel lol. i'll keep you posted on how we get on |
| MALLORCASPAIN | 28-05-2007 10:54 PM |
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Joined: 28 May 2007 Posts: 10 My Profile | I agree with what you are saying about secured loans in some ways I worked with cmpanies like First Plus that would not touch you if you had missed two or more credit card repayments, the key to secured loans is that they can give you a lot breathing space, you can have the loan up to 30 years most take the longe option and repay with 3 years by way or remortage once there credit history is better or they finance is in better order, my experiance with Debt management is not good most of that had shocking credit profiles once the the debt management company took over the debt. |
| DW George | 28-05-2007 11:19 PM |
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Joined: 01 May 2007 Posts: 148 My Profile | Debt managment companies will effect your credit rating, but this must be balanced with what will happen to your credit rating if you miss payments or sign an IVA etc. |
| James H | 02-06-2007 01:06 PM |
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Joined: 27 May 2007 Posts: 32 My Profile | Hi Belkin I think the important thing is to be informed before taking the best option. Use your yellow pages to track down two or three FREE debt adice companies, give them your details, anonymously if it suits you, and see if their advice agrees. It would be VERY interesting to read of your experiences. |
| fred333 | 06-03-2008 05:37 PM |
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Joined: 05 Mar 2008 Posts: 10 My Profile | That is a great point. Information is key. Find out as much as possible. |
