Getting out of debt 'services'.

[RaspberryRippleCrisps]

I just need some honest opinions really,about these 'Get out of debt' services. I've seen several advertised on Facebook lately. I am in debt,not vastly,by a lot of people's standards (so I'm told),but it seems insurmountable to me.

I live on ESA and PIP,I can't work due to disability and serious health problems. I've run up credit card debts of just over £3,500,I also have rent arrears of about £200,plus a couple of payday loans which I owe around £250 on,although the actual figure that I'll have repayed at the end will be more than that because of high interest charges.

I have arrangements with the two credit card companies and for my rent arrears,but these together with my payday loans,plus my ongoing rent and other expenses such as gas,electric,water rates,phone etc are leaving me seriously strapped for cash each month. The total I am repaying on the credit cardspay day loans and rent arrears is at the moment £239 per month. Apparently,with the 'Get out of debt' services,this would be reduced to around £80 per month.

What I need to know is,are these services legitimate? Has anyone ever used one? Did it help? They're not companies that are 'Loan Sharks' hiding behind these schemes?

I know people who have worked successfully with stepchange and CAP, both are reputable and I believe recommended by Martin Lewis. I'm sure if you looked on their websites or gave them a call either would tell you more about how they work and what they could do to support you. Good luck

Stepchange really have been very helpful and I can recommend them, well done for taking some control and looking for help.

Use the standing order method to manage the cards
talkinpeace who used to post on here devised it - details here
www.mumsnet.com/Talk/legal_money_matters/1987219-SPREADSHEETS-for-Debt-Control-Budgeting-Mortgages-etc
and then use stepchange to check the validity of your debts

anything that asks for money is a con

Don't use any debt consolidation companies or any debt service that charges an admin fee.
Look at the Money Advice Service website or National Debtline website for free advice.

CAP will help you. Get onto them tmrw! Good luck

If you're on benefits and you don't own your own home, it's likely that you'll qualify for a debt relief order and that will be the most appropriate solution but you should get independent advice before committing to anything.

But in any case you need to set a workable budget and stick to it as you can't rely on credit to fill gaps in your budget as you have discovered.

Stop using the credit cards and stop paying the bills if you have no money. You should concentrate on rent, food and basic bills and pay those first.

Are you on housing benefit OP? if so, try applying for a dhp with your local authority. Councils also have discretionary council tax funds which you could also ask about. In mine, we ask for an income and expenditure form to be completed but if we see a compelling reason and someone has an income shortfall we would usually award help with a dhp/council tax payment. Even a small amount of help from there could help your overall situation. Have you also looked into getting a 0% interest credit card? If you could transfer your outstanding balance into one of those that could also help stop interest being added to your debt whilst you gradually start paying it down.

Try National Debt line or Stepchange. They can give advice on what the best thing for you would be. Also the moneysavingexpert and debt camel websites are very useful.

You could also speak to the lenders themselves. Especially the loans and credit card companies. If it's leaving you short for food etc you could agree to pay them as little as £1 per month.

Rent is classed as one of the important things you need to pay, credit cards are classed way down the line, so the companies have a code of conduct that means if you are in financial difficulties they have to accept what you can pay. If that's nothing then you pay nothing. They also can't harass you etc.

When my ex left and I was in the crap financially, I spoke to my individual creditors and agreed to pay £1 a month until I was in a position to pay more. This meant I could pay my mortgage, utilities and feed my dc. My credit rating was affected but it was a small price to pay for peace of mind

Commercial debt consolidation companies are rubbish - often people end up doubling their debt as psychologically they feel as if the debt has been paid off and run it up again.

I did this myself the debt was only £2k but before long I was paying the consolidation payment plus had run up the debt again so less money each month to repay the credit cards, it's a vicious circle. Never again!