Clear Payday Loan

thecorner

Hi,
I have quite a few payday loans where the interest has been frozen,
I am paying these back monthly, I recieved a letter from one of these companies saying they would be prepared to accept a reduced offer to clear the loan, I currently pay £40 per month towards a dept of £580.
What sort of offer should I make them to clear this, and would most of the others be prepared to do the same to get rid of my debt.

thanks

Tixy

Hello

Bumping this back for more people to see and advise.

Not sure what to advise as I've not seen a case on here of a payday company offering a reduced offer whilst the monthly payment has been met. How long have you been paying the £40 for? I presume that as the interest has been frozen the balance is coming down by £40 each month? I would think the longer they have had the debt the more likley they are to accept less. Maybe 50% would be a good starting offer so £290? Could you raise enough to do this? (without getting more payday loans?).

Angel105

I have done a few full and final settlement letters lately, and i would advise to offer them lower than you can afford.

This is because every company that i sent the letters out to, came back (depending on how much the debt was for) with a counter offer between £50 and £200 more.

If your first offer is what you can afford, then there will be no room for negotiation. I have had to borrow, to be able to negotiate, which wasnt the object at all!

Hope this helps

misspoppy

can you actually afford to pay a lump sum? If not try your local credit union because they do offer assistance to get people out of pay day loans at a considerably reduced interest rate.

thecorner

Hi, Ive managed to get all the interest stopped on all my loans, including payday loans. However one of them have sent me a letter saying they would accept one off payment to clear the loan, but no figure has been mentioned, I would be able to get A couple of hundred pounds which if they accepted would mean next month I would be able to add the £40 I was paying them to another debt( Hope you can understand what I mean)

Tixy

Definatley worth trying an offer - they can only say no and they may say yes.