Debt Management Companies

Hi,

Can anyone advise me. Myself and my partner are in a lot of debt between loans and credit cards as a result of the downturn and unemployment.

Luckily I am back at work but unable to meet all my payments as I am earning less. I contacted a debt management agency and they have promised to negotiate with my creditors an reduce payments for a relatively small fee.

Has anyone used this option. If so can you advise me in case I do something I will later regret.

Thanks.

Make an appointment with MABS, there is a waiting list but I think it would be a better option.

That fee will be considerable. Those companies will not be able to deal with creditors and some banks refuse to deal with those types of companies totally.

You would be better to see MABS.

Yes the fee is approximately a couple of hundred Euros. This is paid monthly.
I think but am not 100% sure that it is 600 Euro over two months and then a small amount thereafter. As I say I’m not fully certain that these figures are correct. I am going by a family member who used the services of one of these companies.
On a positive note most offers they have made to her lenders have been accepted albeit MBNA. This process has taken a couple of months to get the lenders to agree but eventually they gave the go ahead.
During the process the lenders will keep insisting on ringing you but there is very little they can do as the company has told them on your behalf that you can only pay them a certain percentage.
Obviously your credit rating is going to be greatly affected but they have taken a massive weight off my Nieces shoulders.
As the other posters have said ring MABS and if their waiting list is too long for you to wait than consider your options. Also some of these companies can arrange to call to your house to explain the procedure.