full and final payments

Yeah, I def think it's worth a try. Even if there is only an outside chance. You just don't know if you don't ask. I suppose on some they need to way up the current payments against what length of time. Mine are so low at the moment that a fiver a month is hardly a thing, so a lump sum is a good deal. They have no way of knowing that my payments won't reduce from that next month if my circumstances change. That fiver is an increase from £2.32 which I increased myself, coz I knew it was going to take so long to pay, but if I was keeping it strictly to what the CAB calculated the pro rata to be then that is all it would be. I wouldn't notice £2.32 income a month but I would notice £125!!! I'll let you know what they say.

Debt_Free_Chick wrote:

If you have more than one debt, you have to pro-rata the lump sum and offer all your creditors a FAF. You can't just pick off one debt and deal with that one alone.

I'm curious though ... if you are on a DMP, how come you have a lump sum to offer as a FAF?

I don't have a lump sum - I said on previous post that my Nan has offered to help me if this company will accept a low settlement. I'm offering them £125 to settle - which I know is an outside chance at a third of the outstanding balance. £125 wouldn't go far if I was to pro rata it against £4,500 of debt!!! It is just to test the water and see what they say. Believe me if I had a lump sum of money big enough to settle the debts, even if only on FAFS, I wouldn't be on the boards!!! I just want to see what they say that's all.

Debt_Free_Chick wrote:

You can try it, but I think you should speak to National Debtline first. AFAIK, creditors get very upset if you treat them differently i.e. company B gets nothing and company A gets £125 as FAFS.

If you read the National Debtline site, they state you should pro-rata the payment - here

http://www.nationaldebtline.co.uk/england_factsheets/factsheet_24.php3

Why not call them and see what they say. It's confidential, free advice (they're a charity) and the call is free too! You ought to be aware if there are likely to be any problems doing as you plan, in case you only create more difficulties for yourself.

0808 808 4000

I understand what you're saying, but without sounding flippant how would the other creditors know? I'm not attached to a debt management company - it was free advice through CAB and I am now managing my own debts. How would one know what I was paying the other if I didn;t tell them?

Ok, that makes sense <why didn't I think of that??> Thanks for clearing that up for me. back to the drawing board.

Looks like everything is going to have to be looked at again now anyway - just found out today that tax credits have been too high as partner's promo last month has bumped our income over the threshold for WTC and will also lose a lot of CTC. :-(

I don't think that at all debt free chick - I wanted input and advice which is why I posted my idea. You have highlighted something which I didn't think of and that is a bonus. Last thing I want is people getting on my back now for money because of one payment :-)

As for WTC and CTC, I have declared the change today and been on the benefits board in here moaning. they pointed me in the direction of entitledto.co.uk which suggests that things might not be so bad after all. As long as income doesn't exceed £18k this tax year, CTC stays same and WTC is the only one that will be liable for overpayment - which is much much better.