Making Full & Final Offers...?

Loopy_Laura_2

Just a bit of background...I am on a DMP with CCCS and have been with them since November. My debt is approximately £21,000 with 8 creditors and I am paying them £429 a month. The balance would be going down a lot sooner if it weren't for all the interest and bank charges!

At the end of the month I am getting a very nice annual bonus from work, so would like to settle a few of the smaller amounts, as follows:

1) M&S Chargecard - Approx £550, up to date in paying them and no arrears on account.

2) HSBC Credit Card - £600, this week was passed to a Debt Collection Agency, mentioned legal action in the letter if I did not pay. Has defaulted.

3) Next Directory - Approx £640, has been passed to a Debt Collection Agency, also metioned legal action in the last letter to me.

So I get paid on 30th June and I will be able to afford to pay all of the balances above, but want to know how I should go about making a reduced offer to them, how much do I offer initially for each, should I start writing to them now...and also with the two that have been passed to Debt Collecters, do I contact them or the original company?

Please let me know if you need any more info, and can I just say how helpful you all are and I really appreciate any advice.

Thanks, Laura. x

Sea78

HI,

I could be wrong, but I think it would be best to contact CCCS as otherwise you might be accused of showing bias by paying more off some? I could be completely wrong, but I'd approach them and see what they say as your oringial DMP was set up with them...

Hope this is right!

Sea xx

Loopy_Laura_2

Hi Sea,

I mentioned this big bonus to them a month or two ago and they said to contact them to discuss figures I should offer...but thought the too-ing and fro-ing with offers was supposed to come from me as they usually don't accept your first offer...hmm it's all confusing but I can't wait to actually pay the debts off!

They said if I ever had a big sum of money I should use it to pay off smaller balances or ones with high interest..or to give them the amount and they would distribute it evenly. My thinking was that if I paid off the smalller balances then the other creditors would get more every month and hopefully be happy!!

leanne11

Hi,

I'am on a DMP with CCCS and I'am trying to do the same thing as you. - tackle the smaller debts and pay them off, close down the accounts, leaving more moeny for the other creditiors.

Are you registared with CCCS's online? So you can view all your statements etc...?? If you are, you can go into each creditors account and change the balance, then you have to select a reason for the balance change i.e - 'gift from friends/family', 'made additional payment on the account' etc etc. They are a couple of examples.

Hope this helps!

Leanne xx

FieryBlondeScot

i was curious about this too, so as i rang all my vreditors for the current balances (cccs statements are estimated balances) i asked them all so here goes:

barclays bank- said make them an offer and they will see if they accept it
mbna loan - usually accept roughly 75% of the balance but file a partial default on credit file for 6 yrs
student loans co- full settlemetn only as its govts money!
barclaycard - around 75% of balance
egg card- said they only accept full settlement but knows that some other lenders will accept 50%

so in my head i am working at around 70% of total outstanding balance which would be £8488, instead of £12127 outstanding, sounds good to me.

i am also requesting schedule of all bank charges on my barclays, barclaycard and egg, take them to court to repay (won with alliance and leciester) but not sure if this would infuriate them and then they pay me back my charges but demand full and final settlements in full so have to contemplate on this one!

hope this helps

sportbeth

I would start off at 40% and be a bit cheeky. If you start at 70% they will try and get you up from that. Start at 40%, haggle a bit and you might end up paying 50% if you are lucky.

Try and negotiate in writing if you can. I did one of mine via e-mail which meant I had a record of everything said and it speeded up the process a bit

FieryBlondeScot

did you go through cccs beth?

Loopy_Laura_2

And how long did it take you to agree on something? I get paid 2 weeks Friday so wonder if I should start negotiating now!!