How long to pay off a debt?

jase1422

HI all,
I have 3 debts with marlin finacial, 1= £1400 2=7500 3=5200. I have offered the following to marlin:
Debt1 = £15 per month
Debt2 = £30 per month
Debt3 = £20 per month

This is until 13/2/12 when the remaining balance will be paid in full by the termination grant i get from 22 years in the armed forces. I have sent them a list of income and outgoings and it shows i am left with £115 to pay of debts the remaing £45 is for any emergencys.

I would like your oppinion on wheter this is a fair offer to marlin, and if not what do people think is a reasonable lenght of time to pay off a debt

Thanks in advance

Broken_hearted

its the amount you can afford to pay rather than the amount of time that it takes to pay which is important. Make sure you've covered everything you are allowed/need in your SOA and if the answer you come out with is the same as you have already quoted then its a fair offer.

jase1422

Broken_hearted wrote: »

its the amount you can afford to pay rather than the amount of time that it takes to pay which is important. Make sure you've covered everything you are allowed/need in your SOA and if the answer you come out with is the same as you have already quoted then its a fair offer.

Thanks for the reply, I have spoke to marlin and asked them to accept my repayment plan and they said that 3 years is too long to repay the debts, I told them that i would contact the OFT as i belive that they are trying to pressure me into making payments that i cant afford, This seemed to have an effect as they said that they were not doing anything wrong but would accept my offer of payments for 2 month and then review it, does this sound fair or should i push to have them accept the payment plan in full and permanantly?

jase1422

" bump """"

edinburgher

I don't see it being classed as a 'fair offer' when you've already said that you can afford £115/mth before emergencies! Not meaning to stir for the sake of it, but have you let them know you have £115 a month that you can use for debts? If so, I don't see them accepting £65.

GeorgeUK

Hi Jase

As long as you only offer what you can afford, that is all you can really do. If they choose to review it in 2 months that is up to them. With DCA's alot of people find although they are willing to take the money, they will constantly request you pay more even if you don't have any more to give.

You could try requesting copies of the credit agreements (depending on what the debts are for) to see if these debts are actually enforcable, but other than that, this seems to be the best option.

I would however warn you against setting up a direct debit to make the payments or giving the DCA your account detials. If you set up a standing order, they will not be able to take more than the agreed amount.

Once you are in a position to make settlement offers, make sure that you do so in writing and that you receive confirmation that the payment is in "full and final settlement" not partial settlement. Also as the debt is no longer with the original creditor, they may accept an offer of 25%-50% rather than the full amount owed.