Creditors

[hollypollypocket]

Hello!

I'm wondering if someone can help so I have a couple of finances/loans with some creditors and instead of paying them all separately, is there a company that pays everything off for you and then you just pay them monthly instalments?

I have heard of something like this before but not sure what the companies are called and who to go to ?

Any info would be great, thanks

There's a charity called Step Change that will help you and I think may also be able to get some debts reduced. Look them up.

It’s not a company OP, it’s Debt Consolidation through an IVA. It’s got conditions, strict ones, and fucks your credit for 6 years. I really would not recommend.

An Individual Voluntary Arrangement (IVA) is a formal agreement between an individual and their creditors to pay off all or part of their debts over a set period of time. The IVA is legally binding and approved by the court, and creditors must abide by it.

You pay an insolvency practitioner and they share the money between the creditors after taking their fees out first, it’s a terrible solution

Sounds like I won't do this then; thanks anyways!

All a consolidation loan does is move several different payments into a single payment.
If you are having trouble with debt then get advice from the CAB or a debt advice charity.

OP, are you OK? If you tell us a bit more about your situation, posters might be able to help. Otherwise, Money Saving Expert is a really useful starting point. Good luck.

You shouldn't do anything without really understanding the position you're in and the implications of anything like this, whether it's a consolidation loan, a debt management plan or something more formal like an IVA.

And no-one could tell you which is best without a full picture of your circumstances including whether you can currently afford your payments, if you own a home and other relevant factors.

If you want to make a start, Moneysaving Expert is an excellent resource:

https://www.moneysavingexpert.com/loans/debt-help-plan/

You don’t need to be in a IVA. Visit stepchange.org. They are really helpful and free as it is a charity. There is such thing as a debt management plan. This is where you pay a lump sum to them and they distribute it to each debt, your debt isn’t reduced but most stop interest and will corporate with them. I hope this helps