A few questions...

alanjohnson

Hi, I'm new here. Really trying to get my debt down to nothing.

Just have a few questions that I'd appriciate answers to

1) If a DCA makes contact, as in by letter only, but I ignore them for 6 years - is that debt statue barred?

2) What is a reasonable discount to get a DCA to take off my total debt to them. Do I get more discount if I pay the entire debt off in one go?

3) My Credit File with Experian shows 5 defaulted accounts. If I pay those debts, will they update them to settled / satisfactory - and will this help my credit file / rating instantly or will it take years for new lenders to accept me again?

4) What is the best way to keep motivated to paying this debt off?


Thanks :beer:

RAS

Alan

i guess you are going to get quite a lot of views and a limted number of replies as your questions are very general.

About the only one on which I can really comment is that 6 years after the default the notice drops off your record. Prior to that having settled accounts is better than having defaults.

If you do a full and final settlement (discounted), the DCa is entitled to mark your account partially satified.

GeorgeUK

1) If a DCA makes contact, as in by letter only, but I ignore them for 6 years - is that debt statue barred?

If you have made no payment towards a debt or acknowledged that you owe that debt in writing then the debt MAY be statute barred. If the company chasing the debt can prove that they have repeatedly tried to collect the funds from you (and made you aware of what it was and for how much), then a judge may decide that you have been avoiding the debt which may be classed as fraud.

2) What is a reasonable discount to get a DCA to take off my total debt to them. Do I get more discount if I pay the entire debt off in one go?

Usually if the debt is with the original creditor, you may be able to pay only 50%-75%. If the debt is with a DCA 25%-50% but you may be able to get less depending on how much the DCA paid for the debt and how much the total is. The important thing to remember is that you should NEVER send payment unless you have confirmation in writing of the amount and that the payment is in "full and final" settlement. Partial settlement just means they will ask for the remaining amount at a later date.

3) - not sure how much it will improve but a settled default will be better than an outstanding one. The more time that has passed since a default, the better your rating will be but it will vastly improve when it falls off your account after 6 years. You should make sure that the default date is correct on any default - the first date that payment towards the debt was not made.

4) What is the best way to keep motivated to paying this debt off?

Have a look at the snowball calculator. Work out how much interest you have not paid and look at having snatched this away from the banks.
http://www.whatsthecost.com/snowball.aspx

Also worth trying to reclaim and bank or credit card charges if you haven't already done so.
http://www.moneysavingexpert.com/reclaim/

alanjohnson

GeorgeUK wrote: »

If you have made no payment towards a debt or acknowledged that you owe that debt in writing then the debt MAY be statute barred. If the company chasing the debt can prove that they have repeatedly tried to collect the funds from you (and made you aware of what it was and for how much), then a judge may decide that you have been avoiding the debt which may be classed as fraud.


Usually if the debt is with the original creditor, you may be able to pay only 50%-75%. If the debt is with a DCA 25%-50% but you may be able to get less depending on how much the DCA paid for the debt and how much the total is. The important thing to remember is that you should NEVER send payment unless you have confirmation in writing of the amount and that the payment is in "full and final" settlement. Partial settlement just means they will ask for the remaining amount at a later date.

3) - not sure how much it will improve but a settled default will be better than an outstanding one. The more time that has passed since a default, the better your rating will be but it will vastly improve when it falls off your account after 6 years. You should make sure that the default date is correct on any default - the first date that payment towards the debt was not made.


Have a look at the snowball calculator. Work out how much interest you have not paid and look at having snatched this away from the banks.
http://www.whatsthecost.com/snowball.aspx

Also worth trying to reclaim and bank or credit card charges if you haven't already done so.
http://www.moneysavingexpert.com/reclaim/

Ok thanks!

That's settled it for me then. I AM going to pay this debt off, all of it.

All of my defaults are with DCA - so I'll try and get as much of as possible. I'm in a position now where I can offer full payment so I'd want a reduced amount taken in FULL settlement.

So if I'm right in understanding this, I'm going to use an example, if someone can tell me if I'm right that'd be great:

So say I have one £5500 debt, and I pay it off today. Will it take 6 years for that to go of my file?


Also, I'm really not interested / or have time to reclaim any charges. I don't think for my debts many were applied anyway. Perhaps £100 and if I can get more off from the DCA as a reduced settlement fee I'll be much happier with that.

Is there any other ways to keep me motivated?

Thanks so much!

bumblebee87_2

i think if you have the money to make offers of full and final settlements to the DCA's that should be motivation enough shouldnt it?

id say get writing letters now to ask for a final settlement amount

alanjohnson

bumblebee87 wrote: »

i think if you have the money to make offers of full and final settlements to the DCA's that should be motivation enough shouldnt it?

id say get writing letters now to ask for a final settlement amount

Sorry, I meant I can offer full payment for a debt, then wait a bit, then offer another full payment. Have to wait a month between each (for higher debts will be maybe 2 - 3 months) - but don't want to lose motivation

Luckily I'm in a job where I can pay off £800 a time and still have enough to live on, but guess I just want to find the right balance between saving / debt repaying and living - hence I need motivation to keep paying the debts off.

Thanks for the advice so far!

GeorgeUK

It may take some time for the negotiations Alan.
Some of the DCA's will come back with a refusal or insist that you pay the full debt. It is advised that you make it clear that the offer is only available for a short time as you are borrowing it from a friend or relative. The nationaldebtline has a letter you can adapt on its site for making settlement offers.