Im in debt if i approach a debt management service how will this affect my credit file in the future. Does it mean I will never be able to have a mortgage? Will this plague me for the rest of my life?
2006-09-02 22:52:45 · 6 answers · asked by trouble 2 in Business & Finance ➔ Personal Finance
It will be hard to get a mortgage if you are having trouble managing these finances you already have.
The worse thing you can do is go to a debt management company as they take 20% of what you pay and only pay a minimal amount to your creditors.
For instance, if you pay the debt management company £50.00 per week I assume the company will take about half that and the rest goes on the ten (for example) creditors you have.
In some circumstances the creditors may not stop the interest. Find out though.
Try an go to the CCCS as they are free but there is a long waiting list.
2006-09-02 23:27:58 · answer #1 · answered by Rebz 5 · 0⤊ 0⤋
The company mentioned previously should have read CCCS if in UK.I myself have had to go through them and i find them to be really good.I was struggling with over £50k worth of debt on a modest income,with my own flat.You have to be very very careful with so called debt management companies as they make often exaggerated claims about how much they can save you and they also make charges too,for providing the services they do.I thought of these first,to set up an IVA,until i fully realised what it all entailed.I considered bankruptcy,until i realised i would more than likely lose my home.The CCCS on the other hand is entirely free and is a charity.Although you will have to eventually pay back the whole amount,unlike an IVA or bankruptcy,the payments are often smaller,and i you had your own home then in most case theis would not be at risk unlike with the other means.Any form of long term debt repayment will affect your credit ratings and potential to get a mortgage unfortunately.The main thing is to give the CCCS or Citizens Advice Bureau a call to discuss further before you make any decisions and they will be able to go through everything with you in an impartial way and help you in the best way for YOU!!!,not the best way to line their own pockets
2006-09-02 23:09:27 · answer #2 · answered by Mick H 3 · 0⤊ 0⤋
desparate mentioned CCS (I call it CCCS). They are they only ones that I have dealt with.
What they did for my family was to either lower my interest rates (just by a little) and/or they got creditors to lock into a interest rate so that we had a workable budget. We paid them a lump sum every month and they wired the money to our creditors. There was no promises of getting our family out of debt in a short time or getting creditors to accept "settlements." We owed, we paid.
Since working with them, I have obtained a car loan. It was 2% higher than I think I would have paid if I hadn't started the program. We don't use credit cards anymore, but we still get pre-approved notices almost daily. The interest rate on our home mortgage refinance was prime.--This is my CCCS perspective.
Investigate consumer complaints on the internet before enrolling into any program. A good place to start is "rip-off report.com"
I think CCCS is more of a debt management program than a debt consolidation program. There is a difference, but I can't spell out those differences.
Good luck and have patience.
2006-09-04 03:24:15 · answer #3 · answered by buggeredmom 4 · 0⤊ 0⤋
going to a debt management company is a good idea if your stuck in debt and you can't pay it as that will keep you in debt longer and you wouldn't be able to afford a mortgage anyway.
However, all a debt management company will do is give you a loan for a long period of time with lots of interest and take you forever to pay it off. You'd be better off controlling your spending and looking for a loan company who will offer you a good deal to cover your debts. If you can't pay some of your debts back, speak to them about it or it will make your credit rating a lot worse if you just let it all get on top of you.
2006-09-02 23:03:41 · answer #4 · answered by agius1520 6 · 0⤊ 0⤋
i would go for the citizens advice bereau if i were u..they have a thing called an administration order where you put all your debts together and pay the least minimal cost possible this is free of charge but you have to have debts of around £10.000 to be eligible....this will not have a hold on you for the rest of your life but for about 3 years..good luck in what you do
2006-09-02 23:07:45 · answer #5 · answered by doreen c 2 · 0⤊ 0⤋
a lot, you want get credit for next 6 years, but..if you go on comp and look for CCS-its a charity organisation who will help you to deal with your debts and also will give you advice how to aproach your debtor and offer them a small sum you-can afford regulary.
2006-09-02 23:00:39 · answer #6 · answered by Anonymous · 0⤊ 0⤋