has anyone used a debt management agency?

[fragglerocker]

I stupidly maxxed out my credit card, not on anything exciting just things that always need paying (bills, childcare etc) and now I am struggling to make the minimum payments every month. I rang the credit card people and explained my situation and they said no problem, tell us your income and outgoings and we can arrange a plan for you. I only got as far as telling them my mortgage and childcare every month and he said oh hang on your outgoings are more than you earn you will have to ring this number and araange something with a debt management agency. I don't know anything about these things and it all sounds a bit scary to me. I am shitting myself. I have never had this problem before, I have always paid things on time and never been in this situation before. How do they work? And how bad does it effect my credit rating? I am really scared!

You're better off going to the CAB. Some debt management agencies charge a fee and it can take years to pay off a debt when using them. The CAB will do a benefit check whilst you're there to make sure that you're claiming all that you are entitled to. Don't be scared. You're making arrangements to pay and don't have your head stuck in the sand.

Also recommend you start with CAB before you approach a debt management agency who as Peace says, can charge fees. Other free advice options are CCCS and National Debtline. At the moment, they are seeing an increasing number of people in the same situation as yourself so don't worry about that. They're very good.

They are all really busy this time of year. However, cccs have more resources than cab. They are a charity and free and also manage debt man plans. Have a look at their website they have a good self help section.

We use Payplan. They are excellent and don't charge you anything. Can't recommend them highly enough.

Any of the above mentioned are good but please never, ever go with any of those that advertise on the TV or charge you a fee. Hope you get everything sorted out.

If you look at www.adviceguide.org.uk you'll find a good overview of CAB debt advice. Here's their factsheet on dealing with debt. I agree, don't call any of the dodgy places. CAB also have a good brochure on dealing with debts, which you can pick up from the Bureau.
They will only help you with a budget sheet and re-payment plan if you are already in arrears, but you could probably manage the situation yourself if you feel up to it, following the standard guidelines.

We are with payplan too - really really good and they don't make you feel worse than you already do