There is no guarantee that payday loans would freeze interest if you just entered into a debt management plan.

Citizens advice bureau is a good place for face to face advice but you could do worse than phone one of the companies who are represented on here and see what they think.

Paul

Hi lele2316.

Please don't feel foolish. You have sought advice, and then sought a second opinion to confirm that advice (or not in this case).

That, to me, makes you pretty wise. We have had lots of members over the years write that they wish they had taken a second opinion before making a final decision about how to deal with their debts.

Have a read of the following two pages about sequestration. They may help you to get your thoughts together on this possible option:

Low Income Low Asset (LILA) Sequestration:

http://www.trust-deed.co.uk/lilasequestration.php

Certificate for Sequestration:

http://www.trust-deed.co.uk/certificateforsequestration.php

Hi lele2316

You ask if interest would be frozen on your payday loans if you entered into a payment plan. The answer is not necessarily - however this is not the course of action that the other experts on here are advising. Sequestration would mean that the debts are all frozen, and indeed the majority, if not all of the debt will be written off.

Plasticdaft suggests the CAB and this might not be a bad idea. They can give you a second/third opinion and if you do decide to go ahead with the sequestration option they can help you to complete the application forms. Alternatively your local authority may well have a money advice unit that would do the same.