idebt support

A question about : idebt support

anyone used these or know anything about them, there a company that claim to help you get interest frozen and charges, make it so you pay the companys all you can afford, and consolidate your payments into one manageable payment, just after some advice on them/this route of dealing with debt cheers for any reply

Best answers:

• Hi John,
  AVOID LIKE THE PLAGUE.
  What they're offering is either a debt management plan (DMP) or a debt relief order (DRO, a form of insolvency) which you pay them to manage - I.e. throw money away on something you can get for free.
  Check out Step Change, Payplan, Christians Against Poverty or the Citizens Advice bureau
  Never pay anyone to manage your debts for you.
  MB
• sorry I mean the stepchange debt remedy
• That is a "token payment DMP". It means that you can't make any meaningful payments to your debts. It's good as a temporary solution, perhaps if you are currently off sick or have had your hours cut but you expect your situation to improve soon. But it's not a long term solution as it won't pay your debts off. There is a fuller description about them here https://debtcamel.co.uk/debt-options/dmp/ which includes how to set one up.
  Stepchange will be able to talk you through all your options if you give them a ring: https://www.stepchange.org/
  Do you own a house? If not, then a Debt Relief Order might be a better solution if your debts total less than Ј15,000. Or bankruptcy if they are more.
  If you have a house things are more complicated, but a token payment DMP is not a great long term solution especially as mortgage rates seem likely to rise soon.
• Paying token payments will affect your credit file. They will be marked to show you are not making payments, and if it is for more than a few months will likely result in defaults on your credit file (which stay for 6years).
  You would always be advised to pay the mortgage payments in full before any other debt repayments. The car finance you could probably also continue to pay in full whilst paying your unsecured creditors token payments.