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Originally Posted by TouRiQueT
How do companies that claim to reduce debt work?
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Either by
-getting you to borrow more money from another source (which doesn't actually reduce your debt, but might reduce your monthly outgoings).
-advising you to go bankrupt / default or enter some sort of IVA
-some sort of other negotiation with your creditors (if it's looking like you can't pay at all, a lot of the time people will take half the debt instead, it's far more than they'd get if you went bankrupt, and cheaper too)
However, since there are charities which do this for you, I'm not sure why you'd go to a private company (unless you're looking to borrow more money, which could be a bad idea).
The
CCCS did my debt thing (for free). I now no longer get annoying letters from everyone on the planet and I've stopped paying interest on most of my debt. And my outgoing on debt went from £700 to £360 PCM. </end-plug>