full and finals

laguna_1

Hi all

these are my current debts:-

Mbna CC 1 5k
Mbna CC 2 4.5k
Egg Loan 5k
Egg CC 5.5k
Mint CC 4k
A&L Loan 5k
Lloyds O/d 2k
B.o.s o/d 2k
Lloyds cc 1k
Barclays CC 2k

i may have the chance of up too 15k to clear my debts as a full and finals

what wud be the best way to clear these, id prefer to start low and work my way up

i know mbna offered me a 33% settlement on both my cc's before they were sold on

also some other offers have been made

the problem is as there are around 11 creditors it cud be hard to keep track of offers etc, is it best to do single ones for each creditor or do a lump sum one for them all, showing them all as a full debt and that they all get a fair %...

i think 1st credit i cud get down quite low...just not sure how i should play it....it maybe easier getting someone like payplan to help me with this, or u think i shud do it myself

savingmummy

15k wow! Thats a lovely figure to work with.
I would pay the highest APR ones off first.

No advise on settlements as i`ve never dealt with this before. Others will beable to advise further.

laguna_1

cheers,

im takn this as a loan from a family member to try and clear off my debt as full and finals

was even thinking trust deed or das's but now a family member has potentially offered this to me...

most of my charges have been interest and late fees, so im planning on offering low, very low! lol

im just getting the feeling this could turn into a messy affair, so still not hundred percent sure if a trust deed maybe the best and forget the 15k loan altogether

confusion confusion

GeorgeUK

I'd say it depends on the payments you are currently making to your creditors. How long will it take to pay them off at the current amount?

You could try starting as low as 20% and some may accept. It may differ if the debt is still with the original creditor, but if it's with a DCA, you may be able to negotiate quite low.

One thing to watch for is in their confirmation letter that they state you will not be liable for the remainder of the debt and they they don't limit you to a payment time. In your offer you should state that the funds will be coming from a 3rd party and you can make payment by the end of the month or something similar. In some replies, they have said payment must be made within 4 days so the time it takes for funds to clear can sometimes be a potential problem.

laguna_1

hi george, thanks for ur help

all this stuff is getting on top of me mate, keep thining dad or trust deed, but then i work in accounts and a trust deed will affect future employment

then im thinking full and finals which is basically getting a loan of the folks, which is going to cos them hassle, but there happy to do it if i can get myself clean and pay my creditors back, then once i qualify as an accountnt wit a clean report, ill be able to earn a good salary in a big company and pay them back.

its all getting on top of me again

in terms of payment its been:-

Jan 08 to Sep 08 - £0 a month (min payments roughly £900)
Oct08 to OCt 09 - £300 a month dmp
Sep 09 to Now - Nothing

Majority of them are with dca's

The thing is i dont want to get my parents involved if a lot of them won't accept a lower offer but with these things u have to have the money already before writing offers etc

Is there a way i can send a speculative offer of 20p in the £ or 20% (same thing i know lol) and take it from there

if a good amount accept and i can get rid of a good amount at 15k then id go ahead with it

just reallya nnoyed myself with the way ive been with money and how its affecting my jobs....just recntly got offered an amazing job, a 10k pay rise, however i got declined due to failing the credit check

any help appreciated

Rainy_2

Just echoing the above comments really about tackling the highest interest ones first and starting with low offers-ie 20%.

Another way is to put all of your cards on the table and divide the 15k amongst your creditors with an exact pro-rata payment.

http://www.insolvencyhelpline.co.uk/debt_factsheets/full_and_final_settlement_offers.php

has some great advice on how to get split a lump sum between your creditors, gives you template letters to send and includes important info.

Hope that's of some help to you. Best of luck :A

GeorgeUK

Laguna, sounds like your credit file isn't going to improve any time soon.

If you have defaults on your file, these will stay there for 6 years so even paying off the debts won't give you a clear slate. You may be able to negotiate the removal of the defaults, but only if they are the company that put them on your file.

I would write making the offer as they are not receiving anything right now. They may try to go to court, but if you don't have any available funds, their options may be limited. Do you have any assets that they may try to secure the debts against?

I would write a F&F settlement letter making the offer of 20% of the amount owed. Might be worth sending with it a copy of your statement of affairs if you have no funds available to show this may be their only chance of getting any money. http://www.makesenseofcards.com/soacalc.html

Here are some good examples
http://forums.moneysavingexpert.com/showthread.html?t=1200137
http://forums.moneysavingexpert.com/showpost.html?p=19119435 (post 12)

I would make sure that you state the funds are coming from a 3rd party, that you require any default to be removed, that payment can be made within x weeks and you will not be liable for the remaining debt. I would send the letters first to those with the highest debt and that have issued defaults - if there are defaults issued by companies that no longer hold the debt, you may need to find another option.

laguna_1

yes i can confirm that i have no assets at all and in terms of outgoings only have roughly 100 a month surplus income as ageed with the cccs in my latest call with them

there recommending bankruptcy or trust deed but im willing to slog it out for full and finals so at least after the defaults drop and im debt free, ill be ok in the long run.

quick question, from reading the forums im sure ive read that, you can't be defaulted for the same debt twice. So if the original creditor has already defaulted you, are the debt collection agency allowed to default you.

Also if you have settled the debt with the debt collection agency, and they have marked it as settled is there no way the original lender will mark there one as settled.

Eg. I owe virgin 5k, they sell it to 1st credit. I settle with 1st credit. Can i not write to virgin to ask for the default to be removed as i have settled it with 1st credit.

One of the main reasons i was going for the idea of full and finals was default removal from the original creditor...as a lot of mine have been sold on you see.

Thanks for the help on this, definitely a lot clearer now

funkyprincess

I would suggest dealing with the credit card companies first, while they still have the balances. MBNA have been doing partial settlements for a while. Whilst they are accepting a lower figure, it is still better for them to get your money even if it is not in full, rather than sell it on to a debt collection agency, which I have read buy them for 12p to each of the £1 of the balance.

Once the debt is passed to a debt collection agency it will be harder to negotiate down.

If any of the debts are partially settled, this will be reflected on the credit file, but so are defaults. But at least a partial settlement will get rid of the debt and the creditor won't be chasing you for the outstanding balance - always get it in writing from them when you do this.

Oneday77

I would go in with 30% offers all broken down prorata per Creditor. If they all accepted then that would be just shy of £10k limiting the burden on your folks. Hopefully some will bite at that.

All F&F must be done by letter and no money changes hand prior to written confirmation of no further action, no sell on and balance showing as settled in full.

Just supposing half of the creditors settle that will still clear a lot of space for you and then once those are settled. Revisit the rest with 35-40% offers. With the full £15k you can do 46% offers so still room to negotiate.

DarkConvict

I have seen creditors accept 20%, as you have alot of debts i would dive in with 20% to begin with to a few select creditors, giving them a 14 day deadline, based on responses either up it to 25/30%, or offer 20% to some of the other creditors. Clear as much as possible with the lowest offers before raising the %.