help with old debts

greenfamily

hi
does anyone have any advise i have been paying my debts via the cccs for 6 yrs know. Today i have spoken to a finance advisor that recommended that i go on to an iva i have roughly 30K worth of debt pay cccs 180 per month which works out to debt free in 15yrs. the iva worksout to be 170 per month and debt free in 5yrs so the 30k of debts would reduce to 10k and the rest written off.
Would anyone recommend me doing this.
Also all of my loans and credit cards have been past to various debt collection agences over the years who would have the original credit agreements

tx
in advance

immoral_angeluk

I think you would benefit from getting some further advice from a debt charity such as CAB or National Debtline.to see whether an IVA would be suitable or whether you would be better off going bankrupt.
Just out of interest who did the 'financial advisor' work for?

Tixy

http://www.moneysavingexpert.com/loans/pdf-iva-guide.pdf Have a read of this, IVAs are not suitable for everyone and are not as simple as having 2/3 of your debt wiped out.

In the first instance I would go back to talk to CCCS about whether they would recommend an IVA instead and if they say no ask why not. That may help you make a decision. If you still aren't happy you could try talking to one of the other debt charities to see what they recommend.

If none of them recommend an IVA for your circumstances then I would suggest that the advisor you spoke to was interested in the mega fees they can make from an IVA, not what was actually best for you.

If you want copies of your CCAs request them from the DCA. They should have them and if they don't they should get them from the original creditor to pass to you. You do not have to chase the original creditor yourself. You need to pay a £1 admin fee for each one you request.

greenfamily

hi
it was an advisor from moneyexperts.com

the thing is if the debt companies are willing to take 10k between them selves would it be worth my trying to get 10k from else where and pay them off that way.
these debts are mainly 6 yrs and some older

Tixy

Where were you planning on getting the 10k from? you cannot borrow it from a commercial lender as your credit rating will be terrible as a result of the DMP and you have agreed not to take on any more credit whilst on your DMP.

If you have a family member who could lend you the money than it might be worth considering making full & final settlement offers from your relative to the creditor (which you can do 1 by 1 or all together). However nake sure you can afford to repay whoever lends you this money and have a contingency plan in place in case you should lose your income and not be able to meet your repayments.

greenfamily

thx for the advise all
yes it would be my family that may beable to help
what would you suggest i offer on each debt
outstanding balances
15k
3k
5k
4k
3.5k

tnx again

Tixy

Okay well if all have been defaulted and are with external debt agencies (not inhouse ones) and don't have CCJs then bearing in mind you think it will take 15years to repay, then you could start by offering 25% of the current balance (so 75% discount) and see what they say. You may have to negotiate and possibly go a little higher.

Always do the offers in writing and read this information. There is a template at the bottom. Its best to also add in a deadline by which they must accept your offer (say 2weeks from the date you write). http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=24_full_and_final_settlement_offers

greenfamily

tnx tixy thats helped loads xxxx

Rainbow_Liberty

greenfamily wrote: »

thx for the advise all
yes it would be my family that may beable to help
what would you suggest i offer on each debt
outstanding balances
15k
3k
5k
4k
3.5k

tnx again

Personally I would offer them and tell them that it is a pro-rata amount and ensure that each and everyone of them agree that they would accept it - if one disagrees then say you won't do it.

PRO-RATA £10k / £30,500 = 0.327 (ish)

15k £4905
3k £981
5k £1635
4k £1308
3.5 £1144.50

That to me would be a fair distribution of the funds, but only if they ALL agree