am i missing something?

homealone_2

i could quite easily be about to make myself look very dim but with figures constantly whirring around my head i need some clarification on some issues

1/ with a self negotiation plan with creditors for reduced monthly payments, does this not just mean you will still be paying the same loan back but over a longer period or is this where the interest being frozen comes into this, IF they agree? does this interest differ from loan to credit card as in how it is added or taken away? could someone give me an example?

2/ once you have contacted an agency to help and they send their individual budgets can these be adjusted before being sent on to creditors for full and final settlements?


3/ do creditors contact these agencies at any time?

thanks

poorandindenial

homealone wrote: »

i could quite easily be about to make myself look very dim but with figures constantly whirring around my head i need some clarification on some issues

1/ with a self negotiation plan with creditors for reduced monthly payments, does this not just mean you will still be paying the same loan back but over a longer period or is this where the interest being frozen comes into this, IF they agree? does this interest differ from loan to credit card as in how it is added or taken away? could someone give me an example?

Each creditor will treat each case individually. I am not sure what you mean by the added and taken away bit?? You owe a certain amount of capital to each creditor you will repay towards this capital however if the interest is frozen the capital amount will not continue to increase.

2/ once you have contacted an agency to help and they send their individual budgets can these be adjusted before being sent on to creditors for full and final settlements?

There is a difference between sending a budget to them to arrange a repayment plan and contacting them for full and final settlement (a lump sum that clears the loan) The budget will be updated as your personal circumstances change

3/ do creditors contact these agencies at any time?

Do you meen debt advice agencies??? if so then most contact that would have been with you will switch to being with the agency that is running your DMP

I am not sure if I have answered the questions that you have set as I am not quite sure what you are asking in some cases, could you give a bit more info about what you are planning to do and your circumstances and then we can give you advice that is tailored to that. It sounds like full and finals and debt managment plans have got a bit scrambled (but that could be my 4am jet-lagged brain), also are you planning to use a debt advice agency (only use a free one from the debt advice link above the thread) as if you are they will negotiate the payment plan.

homealone_2

sorry lack of sleep is causing even my questions to be muddled i think what i was trying to ask was how did someone freezing the interest affect a loan, did it become cheaper as you are paying less monthly or does it just go on for longer. i will try and give example i have a loan with halifax where i was paying them £191 a month my negotiation thing asks them to accept £101 so would i pay the £8700 i owe in full at reduced rate taking more years than originally planned, when i asked what figure would i pay if i could pay it now and they said would still pay £8900 as interest was added on in different way to a credit card where you may be paying £160 but only £100 comes off debt as rest is interest. hope i have made thatt clearer and as for budget plan what i was trying to ask was when you have been given a plan by an agency could it be altered at all if you felt something needed tweaking. do the creditors contact the agency to discuss budget plan in anyway. example being budget plan from ND doesnt allow much expenditure but it does not count dla as income whereas cccs does allow for more expenditure but does count dla. so could i get copy of plan from cccs asking them to take off the dla before sending it out. i am unable to get f & f as have disposable income and apparently this means no one will accept f & f as they would rather wait it out and get regular amounts not too much smaller than the original amount?

beanielou

Yes basically you are repaying what you owe over a longer perio d of time as the payments are less IYSWIM.
Your I & E can be changed if need be,HTH..

Deep_In_Debt

Yep, your I&E can be changed if need be. With CCCS, if you find you are struggling on the budget they have given you, then give them a ring and I'm sure things can be tweaked.

lxpeanut

With CCCS you tell them what your expenditure is. They have guideline amounts but you can put more or less than this if you have special circumstances i.e. I need to spend a lot on petrol as I don't live near where I work. They will then put a note on to highlight why that is above the guideline amount. So for example your DLA is there because you have expenses to do with your disability i.e. transport costs. You would need to take these into account in your bundget and CCCS would make a note of why it was higher.

A DMP means that you will be paying debts off over a longer period. A loan is slightly different as all the interest is added at the begining so your balance is as high as its going to get. But for credit cards and oversdrafts the amount will increase as interest and charges are added monthly. For these it is vitaly important you get the bank/card company to agree to freeze interest and charges or you could be paying them off forever.

As for full and final offers. Generaly these won't be accepted unless the debt has been passed on. Either to inhouse debt collectors or external debt collection agencies. Usualy when you have the first contact with these they will offer to settle for a reduced amount. So if you have been paying everything up untill now then they wont accept any offers.

homealone_2

beanielou wrote: »

Yes basically you are repaying what you owe over a longer perio d of time as the payments are less IYSWIM.
Your I & E can be changed if need be,HTH..

what is IYSWIM? and if they freeze the interest does this not mean you are paying back a reduced amount of loan/ credit card?

or does that depend how the interest is added, as in credit cards it comes out of each months payment but from what i gather with a loan the interest is added on to the end

if this is the case and you receive no real reduction to the amount outstanding the self negotiation of f & f would be the only way of getting a reduction in what you owe?

or have i confused everyone else now as well as myself. i wanted to, with help from my mum and selling all assets offer each cmpany f & f settlement but was told that tax overpayments would not accept this which was major disappoinment as half of my debt is to them but wanted to know if anyone was successful in getting a f & f and did the budget summary they sent credititors to back up their finances show any disposable income as been told if there is a disposable income no creditor would accept a f & f

Deep_In_Debt

I think IYSWIM means "If you see what I mean" but I could be wrong as I'm not up on all this.

If they freeze interest you are paying a reduced monthly amount but still paying the full amount of the loan but over a longer period of time.You are basically paying the loan off but creditors are not adding interest.

Deep_In_Debt

I have a disposable income but negotiated F&F's with creditors but found it easier when debts were sold on to DCA's. If creditors see that you are struggling and on a dmp, then they are more likely to accept a F&F if it means that it will take years to pay your debts off.

poorandindenial

hi homealone

You need to look at the terms of the individual loans. Both of mine calculate the interest on a daily basis which makes repayment more like a credit card and if I overpay then the interest added each month drops faster. If the interest is frozen then everything you repay will go towards the balance of the capital that was lent to you. If you go on a DMP it isn't that a creditor will lower your monthly repayments to take account of frozen interest, it is that they will accept what you can afford pro-rata with other creditors and they MAY freeze the interest.

The pro rata thing works so that if you have a loan that is, say, 30% of the total debt that you owe, then you pay them 30% of your residual income (by residual I mean the amount left after essential spends but before unsecured debt repayments)

Could you post up a copy of your SOA (statement of affairs) so that we can see what you are dealing with?? I am a bit concerned that you refer to having a disposable income but are looking to go into a DMP, companies won't accept a DMP if you can afford to meet minumum repayments.

homealone_2

Deep_In_Debt wrote: »

I have a disposable income but negotiated F&F's with creditors but found it easier when debts were sold on to DCA's. If creditors see that you are struggling and on a dmp, then they are more likely to accept a F&F if it means that it will take years to pay your debts off.

when i tried to discuss a f & f with one of my creditors i think it was lloyds they said they could not organise anything as it had gone to collections, is that what you mean? only 2 of my debts are either at or close to that stage. my smallest one for £500 has only just missed a payment yet they jumping on me by phoning at 9am sunday morning couldnt believe it have had a card with them for 24 years talk about quick off the mark, mind you others were not much slower and accounts with them were also long and paid early every month for years!! form what i have read today with a disposable income of £400 no company would accept a f & f. but the only reason the disposable looks so high is that they dont allow for anything besides the extreme basics. how can i find out just what exactly creditors would allow for on a budget sheet? i reallyy wanted to try thr f & f route as other wise this whole mess i did not make will be hanging over me for years and years!! how will i ever be able to try and pick up my life when only 2 months into the seperation i am facing things like this. i even made an attempt to contact him by explaining whats going on in a text and hoping he would help but no reply. how can someone walk out and never look back, answer a call or even a text when they have left such devastation, it is beyond me. the only people who have been understanding through all this has been tax credit people who have put me and my £15800 debt into a hardship team where they will ring and assess things every couple of months and say paying them would cause unnecessary financial hardship, am due another one in april yet all the agencies want me to pay as much as possible to these as its them i owe the most to. please anyone out ther with sucessful f & f please tell me how you did it and any tips you think may help?