Payment Offers

dottyanne

Any ideas how i work out pro-rate offers of payment? If i have say £200 keft a month for all my non-priority debts how do i work out hwo much to pay each one? is it a % based on the amount owed?

Tixy

Yes thats right, pro-rata the £200 over the total amount you owe.

So if you owe £4000 in total then you would pay 5p for every £ you owe.

JasX

Tixy wrote: »

Yes thats right, pro-rata the £200 over the total amount you owe.

So if you owe £4000 in total then you would pay 5p for every £ you owe.

...but perhaps with some 'tweaking' towards ones with higher interest rates unless they've all been frozen? eg you could work total up the debts plus x months interest and use percentages of that to do the split.... or something in between....

Tixy

JasX wrote: »

...but perhaps with some 'tweaking' towards ones with higher interest rates unless they've all been frozen? eg you could work total up the debts plus x months interest and use percentages of that to do the split.... or something in between....

Not sure about this?
Usually you supply an income & expenditure statement that shows how much you owe in total unsecured and how much you have to split between them, therefore they would know if they were not getting their fair share.
Certainly thats how the free advice organisations recommend its done.
http://www.nationaldebtline.co.uk/england_wales/pdf/self_help_pack/credit_debts.pdf

When you make your offers do ask that they freeze interest.

pepe2008

Budget.

Income £

Approx 750



Expenditure £

Housing
Rent 200

Services
Mobile Phone 20

Transport
Spares etc 20
Road Tax 11
Insurance 70
Fuel/Parking 80

Food/ Housekeeping
Food/toiletries 135
Meals at work 30

Misc Goods/Services

Dental/
Prescriptions exempt
Hairdressing 10

Personal
Clothing 40 ( Maternity Wear)
Newspapers/Mags 10
Entertainment 12

Sundries/Emergency
Expenses for baby etc 51

Total 689





CALCULATION

Income 750

Expenditure 689

Surplus 61 ( available for Creditors )


CREDITORS
Amount Repayment Offer
BARCLAYCARD 676 ( 8.36%) 5.10

HALIFAX C/CRD 4676 ( 57.83%) 35.28

MBNA/ VIRGIN 2734 (33.81%) 20.62

I am making this offer to show that I am doing all I can to repay the debts and am doing this in a fair and reasonable way to all Creditors.

I ask all my Creditors that , until such time as I can increase my repayments, you consider stopping all interest and other Account Charges. Thank You.

...........

That sort of thing ( thats not my Budget btw) , with a covering letter.

Good Luck.

edit; sorry, formatting went all to pot!

immoral_angeluk

JasX wrote: »

...but perhaps with some 'tweaking' towards ones with higher interest rates unless they've all been frozen? eg you could work total up the debts plus x months interest and use percentages of that to do the split.... or something in between....

If you do thuis other creditors are likely to see you are treating other creditors preferrentially and they will be less likely to accept the offer or freeze interest/charges.

Numpty_Monkey

The SOA calc has a function to make offers to creditors
http://www.makesenseofcards.com/soacalc.html

Just to add CCCS worked mine out on minimum/contracted payments

BILLIE

Hi Dotty Anne - just to let you know my experience of trying to help myself and my debtors. Don't feel guilty about paying one more than the other until you know how helpful they are going to be. In my case I tried by writing to them all, gave them SOA's etc and one CC came back and would not budge on the amount they wanted each month, refused to freeze or stop interest. 2 other CC's have been wonderful they have frozen the interest, reduced the monthly instalments to what I can afford and give me a call for an update every 6 months (one has actually said they will not ring for 12 months). If I was able to pay off, although I know it would be more beneficial to pay off the one still charging interest, I feel I would like to clear the other two for being so helpful and understanding to my plight. Good luck x