negotiating down debt?

godsakes

hi all

i've just discovered one of my friends is quite a bit in debt - after living costs etc he's boarderline just keeping his head above the interest payments.

I'm just trying to investigate some options for him - one of which i'd like to look into is negotiating down some of the debt, (assuming he's able to borrow a lump sum from friends/family) say offer the creditors 30-50p in the £1 for a quick settlement.

Has anyone ever gone down this route and can offer any advice on the process?

powned

I think reduced repayments can be renegotiated, the CAB may be the people to talk to. I have found most creditors very unwilling to help no matter what the circumstances.

kaisersoze_2

If he is still making the required payments they will be in no rush to accept any kind of reduced payments, he would have to be a number of months behind or even have the debt passed to a debt collection agency for this to happen,this is something i wouldnt suggest as there are no guarantees and his credit file would be knackered.

Could you get him to fill out a statement of affairs and post it on the DFW board and see if they can help to reduce his outgoings.

http://www.makesenseofcards.com/soacalc.html

godsakes

kaisersoze wrote: »

If he is still making the required payments they will be in no rush to accept any kind of reduced payments, he would have to be a number of months behind or even have the debt passed to a debt collection agency for this to happen,this is something i wouldnt suggest as there are no guarantees and his credit file would be knackered.

Could you get him to fill out a statement of affairs and post it on the DFW board and see if they can help to reduce his outgoings.

http://www.makesenseofcards.com/soacalc.html

i believe on the advise of some debt management company he's already stopped making payments to his creditors for the last 2 months so i'm guessing his credit file is already in the process of being knackered - for the time being he doesn't really care as the short-medium term goal is to become debt free rather than getting on the housing ladder.

that debt management company is going to try to get his interest/fees frozen, although they're pocketing about 15-18% for themselves in fees, from my workings out he will be overall better off with the debt management company assuming the creditors play ball with their plan (big if) - but even so i figure there must be a better way cutting out the middle man if possible (hence this angle).

CLAPTON

godsakes wrote: »

i believe on the advise of some debt management company he's already stopped making payments to his creditors for the last 2 months so i'm guessing his credit file is already in the process of being knackered - for the time being he doesn't really care as the short-medium term goal is to become debt free rather than getting on the housing ladder.

that debt management company is going to try to get his interest/fees frozen, although they're pocketing about 15-18% for themselves in fees, from my workings out he will be overall better off with the debt management company assuming the creditors play ball with their plan (big if) - but even so i figure there must be a better way cutting out the middle man if possible (hence this angle).

tell him to drop the fee charging debt managament company and go with CCCS or Payplan..either charge any money.. and to post on the debt free wannabe board

godsakes

CLAPTON wrote: »

tell him to drop the fee charging debt managament company and go with CCCS or Payplan..either charge any money.. and to post on the debt free wannabe board

thanks for mentioning those 2 organisations

i'm not sure he yet has the right mindset for here, money is just a some scary thing that he just prefers to outsource hence why i'm trying to do the leg work for him so the vultures don't take quite as big a cut alas i wish he swallowed his pride first and came to me (or family) earlier.