has anyone offered £1 token payments for big debts?

westmids_3

hi all.. i went down the cca request route..with not much luck..studio and additions are battening down the hatches! oli and have gone quiet for now.
just wondered if offering token payments is the way to go?
maybe through a payment book or giro slip where i get no extra charges .
my mom is currently looking into alcholic rehab : ( and i just cant fight these catalogues as well! i dont know what to do.. for evey letter i send them it costs me more to send recorded delivery and then ink to print out the proof of delivery.. wondered what i need to do and the likely hood that they would accept £1 a month?

Wolfsbayne

I've had £1 token payments accepted on debts worth 8k, 3k and 2k. Took a few goes but once the smaller ones had accepted the offer and constant reminders that as they were token payments every creditor should accept the same they eventually did.

MyLastFiver

It depends on your circumstances. If £1 per month is all you can afford, then that's all they can expect to get. If you can afford more, then they will rightly expect more.

You need to complete a full and accurate Statement of Affairs to work out how much you can afford to pay them. Most of your creditors will expect to see an SOA before agreeing to stop interest and accept a lower payment.

NB - They are not legally entitled to this info but if you want them to compromise with you then providing this info is the path of least resistance for getting the outcome you want, ie suspension of interest & an affordable repayment plan.

MyLastFiver

Just to add - "token payments" are considered by creditors a temporary measure until a permanent repayment plan can be put in place.

westmids_3

hmm.. i didnt think about the token payment bit being temporary... i am kinda stuck in a rut then..
i dont owe a huge amount.. the most being grattan at £1,035..additions about £275 ..studio about £450 and oli about £250.. as i said cca has not helped studio have sent numerous responses , no help at all... and additions have passed me on to NDR

MyLastFiver

As I said - do an SOA to work out your complete income & outgoings. There's a sticky somewhere at the top of this board for a template to do this.

FairyShazza

I had £1 token payments accepted on credit card bills of around £2k, £3k and a loan of £4800 it was a few years ago. I had to complete a full statement of my incomings and outgoings and I sent template letters which I got in a pack from the Credit Consumer Counselling Service - if you haven't already contacted them I would suggest you give them a call as I found them invaluable when my debt was at it's worst.

The token payments are only meant to be a temporary thing though and as soon as your circumstances improve you are expected to increase your payments. I found that as soon as I started getting more cash coming in I just started paying £2 a month then £5 and so on.

pinkdragon

We owe TSB over £21k and offered £1 a month and they accepted!!

di3004

We have received a paying in book from lloyds tsb for token monthly payments of £1 for 6 months, then to be reviewed.;)

Rainy_2

I have managed £1 monthly payments to almost all of my creditors, including £7K loans, 3 credit cards at around £2.5K each and a 10K overdraft.

You do need to send them a detailed financial breakdown - an SOA/ Like advised by FairyShazza, CCCS helped me loads and they have templates that are easy to use.

It did take quite a few attempts with some creditors to accept, but stand your ground. If you haven't got more than £1 a month spare to pay them, then you can't pay them anymore than that!

My agreements are a mixture of 3 months and 6 months and I will have to go through the SOA process again from then on.

Good luck! :A

jamesey07

is it possible to give them about 57p r so a month instead of a quid?