Token payments?

racey84

Hi guys,

I have 3 credit card debts and 1 student account debt. I have been paying these off via a DMP for about a year, all was going well until the recent rise in the cost of living. As I have now started budgeting I knew I was not going to be able to keep up with payments about 3 months ago, so I wrote to the banks and explained this and offered a final settlment figure, which was rejected. I spoke to my DMP and they suggested I try to continue as best I could then just offer them a £1 token payment when I could not carry on. So thats what I did, and now it has got to the stage I knew it would, I was unable to make payment this month and wrote to the banks explaining this about 3 weeks ago and offering them all a £1 token payment. I have not heard from all the banks but all £1 cheques have been cashed. As I have an account with no cheque book I asked my better half to open me the 4 cheques. My question is as I continue to offer the £1 token payments will I have to send a cheque in each month? As this costs me about £4.40 each time with recorded delivery (not much I know but every penny counts at the mo) Can I set up a direct debit from my account for the next few months?

Sorry to have waffled on a bit!!!

mummytofour

Hi,
When I was sending token payments I decided to just post them. Once they had been cashed I knew for sure they had been received, simple. I know it was a risk but as you say it was a lot cheaper.

rayday2

I wouldn't offer companies a direct debit as they would then have control over how much they take.

You could propose a standing order which you control and set up.

Personally me I just put them in the ordinary post and kept an eye on when they cashed.

racey84

thanks for the reply guys.

Ames

Some of my creditors have sent me paying in books so that I can pay them £1 a month, some of them it has to be cheque though. I don't send them recorded though, just normal post.

CCCS_Matthew

Hi there,

I would suggest a Standing Order as the best way to do it. As Rayday suggests, you control the amount so there is no risk of the creditor taking more than you can afford. Furthermore, it costs you no more than the £1 to the creditor.

Are you confident things are going to improve over the coming months?

CCCS

jacnorm

I am also struggling to carry on paying and my DMP told me to maybe do the same as the op and pay the oken payments but, as I owe seven creditors varing amounts which in total come to 45000 I am concerned as to which way they would react. Could anyone let me know their experience of doing this? I owe the majority to LLoyds and they have been okay so far so I am worried about upseting things but, I dont know if I can keep it going.

rayday2

Sorry are you on a DMP or just making the £1 token payments? Also is it temporary can you see your earning potential increasing in the near future?

mummytofour

jac/norm wrote: »

I am also struggling to carry on paying and my DMP told me to maybe do the same as the op and pay the oken payments but, as I owe seven creditors varing amounts which in total come to 45000 I am concerned as to which way they would react. Could anyone let me know their experience of doing this? I owe the majority to LLoyds and they have been okay so far so I am worried about upseting things but, I dont know if I can keep it going.

Hi,
You might be better starting your own post so you can recieev the correct help ;-)