Hi again Sparky,

Thanks for the reply.

Just a few points though, if I may.

I have read the funding link before...... always makes me smile, especially the donation part (are they a profit making business or not?)

'How our IVAs are funded'..... I cant see any real difference between Payplans (Sister company and all) version and any other IVA provider who do not charge up front fees.

To be honest I am very familiar with IVAs (its an old old story with me) and have also had a fair number of contacts with Payplan over the years so I will leave it there and like I have aleady stated they are worth a try along with others.

As for the rest of your post, it is fully accepted and thanks for the stars:), no hard feelings I hope,

Pincer

Hi Pincer,

I didn't mention free IVA just that they do not charge as much as other organisations, as you have said they also do not charge up front fees.

I'm not linked to Payplan (or any other credit related company) in anyway and only know what I have read on their website. My aim was to provide some links to organisations that can help the original poster without charging lots of money for advice.

There is another link stating how they are funded:

http://www.payplan.com/how-are-we-funded.php

Unlike most Insolvency Practitioners our sister company, The Payplan Partnership, do not charge any upfront fees.

The monthly payments that you make into your arrangement will cover the payments to your creditors as well as our fees for putting together and supervising the arrangement.
In short, the creditors agree that they will accept a lower return from the arrangement. In addition you only start paying once your arrangement is agreed so if we are unsuccessful, you will not have to pay for the work that we have done for you up to this point.

The gold stars was my rating of your post for highlighting that Payplan are not a charity.

Sparky.

Hi again Sparky,

Correct me if I am wrong but did your last post not originally mention free DMPs.... AND IVAs,

'It is free but they are not a charity'. so are they a profit making business or not?

They receive 'funding' from 'many organisations'? Can you enlighten me a little on who excactly funds them? as your link clearly states 'support' NOT funding.

I cannot argue the point that they DO administer FREE Debt Management Plans (DMPs) and happen to think that they are worth a try, but I certainly would be interested in your interpretation of the difference between the fees they charge (eg, nominee & supervision) for IVAs and any other IVA company apart from up front costs.

As far as the gold stars are concerned I would say this..the internet is awash with people / companies who masquerade themselves as giving FREE debt advice or promote them as such and with this in mind I will accept your offer.

Pincer

Hi Pincer,

I'd not checked their charity status, and you are of course correct. (have some gold stars)

It is free, but they are not a charity. They receive funding from many organisations:

http://www.payplan.com/organisations-that-support-payplan.php

They are still worth investigation considering how much other organisations charge for the DMPs or IVAs.

Sparky.

HI Sparky,

I would second that, with just a small amendment though...........

'Three charities and a free Debt Management provider'

Pincer

As Pincer has already suggested it would be worth getting some free advice about your situation from one of the four charities. They can also be regarded with more authority by creditors.

www.citizensadvice.org.uk

www.nationaldebtline.co.uk

www.payplan.com

HTH

Sparky.

Hello fluffycat,

If you have prioriitised your debts and then made pro-rata or token offers to your non-priority creditors then it is usually best to stick to your offers or the basic DMP procedure is likely to breakdown and you will probably end up back at square one with your creditors.

It is difficult to see how Citifinancial can force you to make payments that you cannot afford and I would presume that the interest is already front loaded onto your agreement so unless there is some comic penalty charge clause for late and reduced payments you should not incur extra costs, however they may resort to recovery / legal action at sometime in the future.

The credit industry seems to be full of companies / agents who cannot work out the simple mathmatics of you cannot pay what you have not got, makes you wonder if they are just reading off a script sometimes :)

You should be congratulated on making the effort to deal with your debts and lets hope your creditors respond in a professional and responsible way, but dont hold your breath.

The above is based on the limited info you have provided, have you taken proper advice on your debts / options etc ? If not then I would strongly advise that you do.

Pincer

Hi, i am struggling financially at the moment and have written to my creditors offering reduced payments and supplying a budget sheet.

Citifinancial (with whom i have a personal loan with) have told me they cannot accept reduced payments unless it is at least half of what my normal monthly payment would be. This is still a bit too much for me to afford. Can they force me to pay at least half? Or should i stick to my guns and keep offering the amount i can afford?

Any answers gratefully received.