Debt write off / reduction agencies
Discussion
Afternoon!
I've been lurking round these parts for ten years or so but given the subject matter and the fact I have suppliers, clients and friends on here too, you'll understand the need for a touch of temporary anonymity.
I've recently come out of the end of a painful but successful business turnaround process. I now own 25% of the company that employs me. We've won some very nice contracts that will keep us honest over the next three years and the future is looking good.
The downside is that I have personally accrued about £18k of debt over three credit cards. This is for three years of company expenses that have not been repaid plus of course the interest on the same. To a 'certain' extent, the accumulation of this debt was planned and part of the recovery process. The plan was that once we'd come out the other side, this would be classed as 'investment' and I'd clear them off by remortgaging the house.
However, I lost track of the interest on these and for the past 6 months, have struggled to meet the monthly min' payments - though I do always pay something. At the end of last year, despite the debt, I had a very good credit score. A few weeks ago, I approached our mortgage advisor to arrange the remortgage but was refused because of my poor credit rating. I checked and indeed it has dropped as two of the three cards remain over their limit, one by quite a margin.
I've done all the right things and have kept the card companies informed and I have to say, they have been pretty good - temporarily freezing interest / charges / etc.
But, the fact remains that I'm now in a catch 22 situation. To sort the mortgage to clear the cards, I need to improve my credit rating but to improve my credit rating I need to clear the cards - or at least bring them back to within their limits which I can't do with out the loan.
So, whilst working out how I can do this, I get a cold call from a company called Control Finance saying that they can help to write off up to 70% of the debt, freeze interest and charges and other benefits.
On the face of it, this seems spot on!
I have no intention of not settling the debt, I'm not the sort of person to walk away from this sort of responsibility but on the basis of what they have said, it does appear to provide a means to break the catch 22.
Has anyone used these or similar companies? I remain sceptical but when the urgent need matches the service available to you, it's difficult not to bite so would appreciate any insight from the learned masses of PH.
I've been lurking round these parts for ten years or so but given the subject matter and the fact I have suppliers, clients and friends on here too, you'll understand the need for a touch of temporary anonymity.
I've recently come out of the end of a painful but successful business turnaround process. I now own 25% of the company that employs me. We've won some very nice contracts that will keep us honest over the next three years and the future is looking good.
The downside is that I have personally accrued about £18k of debt over three credit cards. This is for three years of company expenses that have not been repaid plus of course the interest on the same. To a 'certain' extent, the accumulation of this debt was planned and part of the recovery process. The plan was that once we'd come out the other side, this would be classed as 'investment' and I'd clear them off by remortgaging the house.
However, I lost track of the interest on these and for the past 6 months, have struggled to meet the monthly min' payments - though I do always pay something. At the end of last year, despite the debt, I had a very good credit score. A few weeks ago, I approached our mortgage advisor to arrange the remortgage but was refused because of my poor credit rating. I checked and indeed it has dropped as two of the three cards remain over their limit, one by quite a margin.
I've done all the right things and have kept the card companies informed and I have to say, they have been pretty good - temporarily freezing interest / charges / etc.
But, the fact remains that I'm now in a catch 22 situation. To sort the mortgage to clear the cards, I need to improve my credit rating but to improve my credit rating I need to clear the cards - or at least bring them back to within their limits which I can't do with out the loan.
So, whilst working out how I can do this, I get a cold call from a company called Control Finance saying that they can help to write off up to 70% of the debt, freeze interest and charges and other benefits.
On the face of it, this seems spot on!
I have no intention of not settling the debt, I'm not the sort of person to walk away from this sort of responsibility but on the basis of what they have said, it does appear to provide a means to break the catch 22.
Has anyone used these or similar companies? I remain sceptical but when the urgent need matches the service available to you, it's difficult not to bite so would appreciate any insight from the learned masses of PH.
My business is Debt Management,so I hope you take this in the right way.
They have offered to stop the interest, that is already done. So you don't need them for that.
You have already reduced your payments, so you don't need them for that.
They cold called you and said they could reduce it by 70%.....
They can't give a sweeping statement like that without backing it up. Be wary, Full and Final settlements can be had, but no firm can guarantee a 70% reduction without talking to your creditors.
How do they want to be paid? Upfront? tell them to go away!
A percentage of the saving? could still be expensive.
For the record I do Full and final settlements for my clients for a flat £50 fee per debt.
Feel free to message me if you would like some advice. (Free)
They have offered to stop the interest, that is already done. So you don't need them for that.
You have already reduced your payments, so you don't need them for that.
They cold called you and said they could reduce it by 70%.....
They can't give a sweeping statement like that without backing it up. Be wary, Full and Final settlements can be had, but no firm can guarantee a 70% reduction without talking to your creditors.
How do they want to be paid? Upfront? tell them to go away!
A percentage of the saving? could still be expensive.
For the record I do Full and final settlements for my clients for a flat £50 fee per debt.
Feel free to message me if you would like some advice. (Free)
uknowme said:
That's the first question I asked them! Seems not but the chap's coming round on Saturday so will drill him for more info on this.
He's going to suggest one of two things:1)Enter a IVA which most definitely will f
k your credit rating or2)Simply write to all the creditors and ask them to freeze everything/accept less to prevent an IVA and hope for the best.
Effectively you have already done 2 and the truth is that your credit rating is still f
ked.I would ask further advice from here (or anywhere) before believing a word he tells you.
If you could simply not pay 70% of your debts and be totally unaffected by it then everyone would do it and our economy would be f
ked.The company mentioned would organise an IVA for you. They act on your behalf and tell the companies that you can no longer afford the repayments and that it would be best for all concerned if a payment plan could be agreed upon so that they get some money rather than nothing if you went bankrupt. The company naturally drive a hard bargain and get a huge amount off the amount owed and then add their own huge fee the balance for you to pay over 60 months usually.
All accounts included within the IVA will be marked as DEFAULTED and will remain unsatisfied on your credit file. The IVA account is added to your credit file. Therefore any new creditor can see the paper trail that you fell behind with the accounts, defaulted, shirked your debt and entered into an IVA.
You won't get any type of mortgage for the six years that the defaults and IVA are on your file. Infact any form of borrowing will be tough/impossible to obtain.
I'd avoid this like the plague. Destroying your credit file is not a good idea. There are lenders who will consider your mortgage application once your cards are back up to date and out of arrears. If the business is doing well surely you can scrape the money together somehow to get them back within the limits?
All accounts included within the IVA will be marked as DEFAULTED and will remain unsatisfied on your credit file. The IVA account is added to your credit file. Therefore any new creditor can see the paper trail that you fell behind with the accounts, defaulted, shirked your debt and entered into an IVA.
You won't get any type of mortgage for the six years that the defaults and IVA are on your file. Infact any form of borrowing will be tough/impossible to obtain.
I'd avoid this like the plague. Destroying your credit file is not a good idea. There are lenders who will consider your mortgage application once your cards are back up to date and out of arrears. If the business is doing well surely you can scrape the money together somehow to get them back within the limits?
OscarIndia said:
My business is Debt Management,so I hope you take this in the right way.
They have offered to stop the interest, that is already done. So you don't need them for that.
You have already reduced your payments, so you don't need them for that.
They cold called you and said they could reduce it by 70%.....
They can't give a sweeping statement like that without backing it up. Be wary, Full and Final settlements can be had, but no firm can guarantee a 70% reduction without talking to your creditors.
How do they want to be paid? Upfront? tell them to go away!
A percentage of the saving? could still be expensive.
For the record I do Full and final settlements for my clients for a flat £50 fee per debt.
Feel free to message me if you would like some advice. (Free)
YHM ....or at least will do later!They have offered to stop the interest, that is already done. So you don't need them for that.
You have already reduced your payments, so you don't need them for that.
They cold called you and said they could reduce it by 70%.....
They can't give a sweeping statement like that without backing it up. Be wary, Full and Final settlements can be had, but no firm can guarantee a 70% reduction without talking to your creditors.
How do they want to be paid? Upfront? tell them to go away!
A percentage of the saving? could still be expensive.
For the record I do Full and final settlements for my clients for a flat £50 fee per debt.
Feel free to message me if you would like some advice. (Free)
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