Continue trying to pay tru Financial Mgt Co?

Hi

A friend of mine is going through an awful time. She and her husband haven't been living within their means for a long time and they want to try get some control over their finances now. I said I'd help them with this and try research different options.

They currently pay a financial management company €300 per month. This consists of a certain amount for a personal loan, some for a credit card and €60 management fees. I was horrified to see how much in fees they're paying. Would they be better engaging directly with the creditors instead?...they're currently on reduced payments because they went into arrears (I think the money for the loan is even paid to a solicitor). The solicitors & credit card people can't refuse to deal directly with them instead? €60 would go a long way. many thanks.

Its difficult to say if they could stop the payments without more details on what arrangements are in place with lenders/solicitors, details of the contract signed with debt management company etc, but I agree eur 720 per year is a lot of money that should be coming off the loans instead.

definitely worth digging into whether they can terminate

These financial management companies are a complete rip off. FULL STOP. They achieve no more then approaching the creditor directly yourself. You are correct when you say that €720 a year would go a long way in paying a few bills.

If you want advice, then I would contact MABS, who provide a suberb service for free.

Best of luck

These so called Debt Management Cos are a parcel of Confidence tricksters. Best thing IMO would be to terminate any further dealings with these people and to tackle the matters on their own. Let the friends work on rebuilding their own confidence and to go to the creditors directly. It really is not a case of they are the only persons with Financial problems in this climate. As long as a creditor sees that an effort is being made, they will work with persons. It really is a matter of common sense from all sides.

Thank you for your replies.

What you are saying was my initial gut feeling too but wanted to check it out first before I talk to them. Yes I just think they're afraid of their lives at the moment even to answer the phone. I'll see if they signed an agreement/contract and will take it from there to cancel the arrangement and deal direct. JD