Advice on approaching creditors please

MemmaJ

I posted a thread in The IVA forum regarding mine and my ex-partners joint IVA. Following advise, I've decided to come out of the IVA and approach my own Creditors myself, with a view to makinga Debt Managment Plan with them, or offeringa Full and Final Settlement.

I actually only have 4 Creditors and my total debt is only just under £2,000.

I don't intend to inform the IVA company of what I'm doing (not until I've already done it), as they were very keen for me to arrange a Debt Management Plan through them, which I don't want to do.

However, I don't know much about how to approach Creditors. My Mum is quite a frequent user of the MSE Forums, and she says that you guys will be able to help - she thought there may even be a letter template on here somewhere (particularly in regards to offering a full and final settlement, to prevent me being chased for the remaining balance in a few years)?

If anyone can offer any advise, I would be very grateful.
Sorry if I haven't posted enough information, I didn't want to unecessarily overload you - but of course if you need details of the Creditors and the balances, I'm happy to post them.

Thank you in advance.

downnotout

http://www.nationaldebtline.co.uk/england_wales/debt_advice.php#6

Look for the sample "Full and final settlement for any debt" from the drop down menu.

If they are original creditors, try to offer in the region of 50% and work from there, however if it is from a debt collection agency then I would send a letter offering 25-30% initially and work from there.

MemmaJ

Thank you, that is very helpful - one of the four debts is with a debt collection agency (Max Recovery) and I wasn't aware that you could offer them less!

downnotout

Well the thing is, DCA's buy your debts off the original creditor for pennies in the pound. Therefore say they buy your original debt of £500 for something like £50, you offer them £250 they make a huge profit, you make a saving, everyone goes home happy, in theory. However they do not have to accept your offer, in this case, they should try and negotiete with you. Good Luck