dept free direct

[herbie]

I understand the plus off being out off dept but does using this type service damage your credit rating forever or just for the five years?,also if your main dept to your bank ie for loans can they stop all direct debits and close your account? thanks for any help

[Kathyan]

Don't touch Debtfree Direct with a barge pole! All they are interested in is your money. If you owe your bank you will have to change banks. Once you have paid the IVA it remains on your credit file for 6 years although it will say that the debts have been satisfied. If you are in debt go to the Citizens Advice Bureau or ring CCCS or Payplan, they will give you advice and it's free!

[ummmm]

Kathyan is right. But I owe my bank money on a credit card which I'm in a payment plan with. They haven't changed my current account at all. I still have my debit card and my overdraft. I think they check the activity levels of your account and if it shows that you are paying back what you can afford they leave you alone. They still make money from you using their accounts

[Kathyan]

You will have to change banks if you go into an IVA though.

[fayelc123]

I'm going through an IVA at the moment (not with debt free direct) & it is the best thing i have ever done.
It definately isn't right for everyone though, depends on how much debt you are in etc..

[herbie]

Thanks all think ill try citizens advice

[dappleby]

really you should only look at an IVA when the only other option is bankruptcy. Usually writing to your creditors with a sensible offer, and asking them to freeze the interest will do.

IVAs are expensive not just ot you but also to your creditors (you may be paying 30p in the pound but they will only see 20p of it) so they will prefer to have the extra 10p and keep it away of Insolvency guys like us

[johnnybriggs]

It really annoys me how Payplan are sometimes classed as a charity when they aren't- even by the BBC.

Ok, Debt Free Direct are the largest providers of insolvency solutions in the country but they are funded in exactly the same way as Payplan (aka Shaws, part of the Totemic group) and indeed the two companies have a business relationship.

So get your facts right.