Pay off debts or wait?

Numpty_Monkey

Buddingblonde wrote: »

If you are going to hold onto your payout, bring it down to under £6000 - savings under 6000 dont impact on income based benefits - over £6000 do.

If Contibution based the savings level is £16,000

Buddingblonde

Maybe I wasnt clear - if you are going to be without work for a longer period of time or you have not got enough stamp for income based jsa then bring your savings to under £6000. Savings start to impact on income based benefits (like income based jsa) at £6000 - you are seen to generate tariff income at £1 per £250 above the £6000 level.

£16000 is the point at which you lose your entitlement to income based benefits.

Contribution based jsa is based on your stamp paid.

fatbelly

tippytop wrote: »

First thing on Tuesday i will contact the DCA and offer the reduced amount that i can afford. Clear my debts and never look back.

Do it in writing.

You can adapt the letter at the end of this factsheet but don't bother about the pro-rata calculation.

Factsheet | Full & Final Settlement offers

You haven't said who the dca is but if you search this forum you may find examples of F&F deals through that dca which might give you a good idea where to pitch your opening offer.

It's not a moral decision, it's a commercial one. They can choose a lump sum now or a drip-feed for umpteen years.

And Buddingblonde is spot on regarding benefit rules.