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settlement of debts
debtfree1day
Posts: 382 Forumite
Hello
I have been advised to move my savings (includign Bonds) circa 8k realisable off my variuous debts - 74k
as the interest benefit associated with investment is nowhere near the cost of debt (cira 20%+ interest)
BUT wonder if there is a way I could negotiate cheaper final settlements from any of the companies.
Upo until my LBM (3 months ago) I had moved all my debts around so well (BADLY.....................) that I have not got behind, and therefore many of my creditors dont know I am in trouble
shall i contact them and offer final settlement in leiu of the debts I have?
Thanks
Lisa
I have been advised to move my savings (includign Bonds) circa 8k realisable off my variuous debts - 74k
as the interest benefit associated with investment is nowhere near the cost of debt (cira 20%+ interest)
BUT wonder if there is a way I could negotiate cheaper final settlements from any of the companies.
Upo until my LBM (3 months ago) I had moved all my debts around so well (BADLY.....................) that I have not got behind, and therefore many of my creditors dont know I am in trouble
shall i contact them and offer final settlement in leiu of the debts I have?
Thanks
Lisa
0
Comments
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anyione?
Is this a good thing to do or should I do the snowballing thing where I throw the money at most expensive debt?
as an aside, £81 on ebay, £27 cashed in on Boots card, £105 Mystery shopping fees in 2 weeks.
lisa0 -
HI
If you've been paying up to date and all is fine from your creditors point of view I doubt very much that they would take a reduced settlement as there is no benefit for them at all. If you have loans, you could find out the settlement figures now for them as you might save interest on them. I would recommend paying off your highest APR debts though, as this will mean you can tackle the remaining ones fully.
Have you contacted the CCCS yet? It might be worth ringing them for advice on all of this.
Sea xxxCCCS DMP:Feb 07
Total:£37,016.47 now £0 DEBT FREE FEB 14
2022 Decluttering Campaign 49/10110 -
And well done on the extra money raising - you WILL get this debt whipped and sorted
Sea xxCCCS DMP:Feb 07
Total:£37,016.47 now £0 DEBT FREE FEB 14
2022 Decluttering Campaign 49/10110 -
general consensus that I have no chance of reduced settlement unless I spend several months not paying / defaulting on most of the debts and then proove why
cheers anyway
lisa
(sea, yes same advice.....they want to offer small payments to each creditor, and ask for frozen interest BUT little chance of reduced settlemtn figures)0 -
AllI am going to be really honest - I am SO jealous of people on here who can manage to negotiate full and final settlement at levels around 40-50%I am thinking, I could ring for 0% interest, if this isnt granter start defaulting whilst piling cash in a savings account, and then in 6 months negotiate suignificant reductions on debtIts not the right way and its not DFW behaviour, but with 73k mountain in front of me....................Lisa0
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I appreciate your honesty and understand why you feel like that, but I just wanted to add a word of caution - while your credit rating is good (which it should be if you're not making late payments/defaulting), you have options - you can apply for 0% apr cards or low life-of-balance cards etc. Once you start defaulting, you will also most likely start being rejected. You *may* end up being offered reduced final settlements, but in the meantime you will get hassle from banks/debt collection agencies etc, by phone and by post, and there is no guarantee they will offer a reduced settlement. Plus if you have a mortgage, you will struggle to change providers to get a better deal etc (and if no mortgage, and you're wanting to buy a house in the future, the defaults will go against you for the next 6 years).
It's up to you at the end of the day, and I'm not making any judgement on what you have said - just pointing out a few of the likely pitfalls of the plan. Hope it's of some help.
As others have said, why don't you post your SOA, and we will have a look to see if we can offer any suggestions?"I wasn't wrong, I just wasn't right enough.":smileyhea97800072589250 -
snagglesthanks - tied in to mortgage until Jan 09 - although I have an option to borrown another 50k and pay 1300 fee (high value loan!) - interstingly they want me to pay off all debts, so I cant borrow less (AND avoid the fee!)I am sitting on the offer whilst i reflect.My big issue is that I cannot get 0% deals, and most of the credit cards have started to cripple me - I pay over £400 a month in interest. 21.9, 23.9 and 24.9% intersest is killin me. One company went from 0 to 15.9 at end of term, 3 weeks later wrote to me saying it was going up to 23.9%I have posted SOA before, can I link it someway??Cheers0
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