How can i negotiate paying off my debts with my redundancy payment?

vickyb25

Hi there

This is my first post so here goes.

ive recently been made redundant and am due to get my cheque from my ex employer soon.

Ive worked out whats owed out to clear everything off that i owe (loan x2, credit card, and a few months of a car payment left), what im basically looking to do is clear everything off as im going back into full time education so wont have an income coming in to pay my debts anymore all that will be coming in is my adult learning grant £30 a week!!

If i do clear everything off with my redundancy that will leave very very little left so im looking for a bit of advise on how to negotiate with the different companies to try and cut this down if at all possible?
am i best doing this through a debt company or do you think i can do it myself?

Any advise anybody can give is greatly appriciated!

Thanks

Vicky

Tixy

Hi Vicky

Have you been keeping up to date with payments up to your redundancy?

You can manage this yourself I think - what you need is to write to your creditors, tell them you have been made redundant and that you won't be earning for sometime and offer them a reduced full & final settlement. I would not advise you to tell them how much your redundancy payment is for (as they will probably want it all).

I'd suggest you put something in the letter to suggest that if they don't accept your settlement offer you will use the money to repay other creditors and that you will only be in a position to offer token payments against your debts.

I'd also advise that you give them a deadline to accept your offer (say 2-3weeks from the date you write).
Here is a link to the standard F&F letter which contains the important bits you need - http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=24_full_and_final_settlement_offers

This letter might also help a bit, you might want to borrow bits from it - http://forums.moneysavingexpert.com/showpost.html?p=21937969&postcount=54

Deep_In_Debt

Tixy wrote: »

Hi Vicky

Have you been keeping up to date with payments up to your redundancy?

You can manage this yourself I think - what you need is to write to your creditors, tell them you have been made redundant and that you won't be earning for sometime and offer them a reduced full & final settlement. I would not advise you to tell them how much your redundancy payment is for (as they will probably want it all).

I'd suggest you put something in the letter to suggest that if they don't accept your settlement offer you will use the money to repay other creditors and that you will only be in a position to offer token payments against your debts.

I'd also advise that you give them a deadline to accept your offer (say 2-3weeks from the date you write).
Here is a link to the standard F&F letter which contains the important bits you need - http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=24_full_and_final_settlement_offers

This letter might also help a bit, you might want to borrow bits from it - http://forums.moneysavingexpert.com/showpost.html?p=21937969&postcount=54

Good advice from Tixy.

Make sure that you get the offer in writing and that it is in full and final settlement and that your credit file will be marked as "satisfied" and that neither they, nor any third party or associate will chase you for the remainder in the future and that you are released from any further liability.

Phew!! That was a long sentance! That National Debtline website has a good template letter you can use.

All this said, often you will get better deals if you have been missing payments with creditors otherwise they will think that you still afford payments therefore can afford to pay the whole amount off. You tend to get better deals when debts are sold on to DCA's as they buy the debts for peanuts, or if you've regularly missed payments or are on a debt management plan.

Good luck with it though and expect a bit of to'ing and fro'ing.