What to do, what to do?

Bobsnotsilly

Hello,

I have been so irresponsible with loans/credit card debts in the past that it is quite unreal. My attitude used to be "you only live once" and proceeded to max out and not pay back. However a few years ago it all, inevitably came out on top for me and I decided to pay it all back and start afresh. I am with Payplan and have got an original £22,000 debt with 14 different companies down to £14,000. I have been paying Payplan £342 per month, and as my circumstances have changed, they have agreed to accept £50 a month for the next 3 months before reverting back to £342. My father has kindly offered to give me £4,000 and I have decided to try and offer this , in different percentages, to the higher debt creditors. Do you think this is the right way to go about it? For example the company i owe £5,000 I am going to offer £2,800 as a full and final settlement offer. I am hoping that the £4,000 will pay up to £7,000 of debt???

Also my credit file obviously has a 14 x defaults, but i'm pretty certain a few of these are coming up to 6 years old. Even though I am still paying them, am i right in thinking that the default will be removed after 6 years? (actually writing that, I dont thinki i'm correct).

Help very much appreciated

DarkConvict

DCA's will usually accept between 20-50% in a full and final offer although some will demand the full amount, in those cases so be it offer it to another DCA, but ensure the paperwork is correct and so with a 7/14 reply deadline, so they don't attempt to pursue for further amounts in years to come. Im sure PayPlan can help with the letters, but we do have some templates on here somewhere.

It is only 1 default per debt, so yes these will be falling off 6 years after been placed. The accounts you have with the DCA might stay open until the debt is closed, so there maybe some impact from still having technically credit in use on your report.

In F&F offers, some DCA's will accept the F&F offer and if you ask also remove the default/credit history of the account.

Tixy

Hi bob and welcome

Glad you have managed to reduce your debts so far.

Have a read about full & final settlements from this factsheet - very important to get written proof that they agree its F&F - http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=24_full_and_final_settlement_offers When you write to them always give them a deadline to accept the offer by (say 2weeks from when you write) otherwise they may mess you about a bit.

This is the letter that asks them to remove a default although for any that are about to drop off anyway then it may not be worth it - http://forums.moneysavingexpert.com/showpost.html?p=26867873&postcount=10

If you find the DCAs are not accepting your F&F offers you might want to look at whether they have a legally enforceable CCA - if it turns out they don't then they are much more likely to accept lower percentage offers - http://forums.moneysavingexpert.com/showthread.html?t=2078599

Bobsnotsilly

Many thanks. After speaking to PP , they advise me that what i propose is not an F+F, but a "short" settlement???? Is there a noticable difference?.. They are offering to negotiate on my behalf but I am wondering whether to go it alone. Also I dont know how long my defaults have been in existence (14 different creditors). Is there a way of finding out? Many Thanks,.