Whats the amount for a token payment?

indebtmummy_2

Hi all...
Well i have about 5 or 6 debts , all catalogues and one credit card.. total is about £ 3000 ..
I need to sort these out as they are putting interest on them and are now sending letters about court ..
I am also behind on my water rates which i no i need to sort out a.s.a.p..
I had considered bankruptcy just so i can start fresh without all the letters and phonecalls but i know that is rather drastic for the amount owed.

I had planned on sending token payments to all the catalogue and credit card debts by postal order,, How much do i need to send each one as a token payment?

CCCS_Sarah

indebtmummy wrote: »

Hi all...
Well i have about 5 or 6 debts , all catalogues and one credit card.. total is about £ 3000 ..
I need to sort these out as they are putting interest on them and are now sending letters about court ..
I am also behind on my water rates which i no i need to sort out a.s.a.p..
I had considered bankruptcy just so i can start fresh without all the letters and phonecalls but i know that is rather drastic for the amount owed.

I had planned on sending token payments to all the catalogue and credit card debts by postal order,, How much do i need to send each one as a token payment?

Hello,

A token payment is as much as you can afford based on your budget, so this could even be £1.

A token payment is not a long term solution to a debt problem as it would never get the debts cleared. I would recommend that you have an appointment from a free organisation such as CCCS, National Debtline or CAB. They will all be able to discuss your options. If you would like an appointment with CCCS then you could call 0800 138 1111.

As you have a low amount of debt, you could possibly apply for a DRO if you fit the other criteria i.e. no assets over £300 and less than £50 surplus. A DRO is similar to bankruptcy but the fees are a lot less.

Another option is, if you were making reduced payments and the creditor did apply for a CCJ then you could apply for an Admin Order. This is a reduced payment plan through the court but you can get the time capped at three years with a composition order.

Hope this helps
Sarah

indebtmummy_2

Hi , thanks for the reply.. so token payments are not my best option , i have no assets at all , council flat on income support and child benefit and no car.. i live hand to mouth every day with my children : ( .. one bill comes in and i miss another to pay it hence being behind on water rates.. i am just at a loss now.. as for the DRO i am unable to go for it as i think i am just over the £50 a month mark.. any more help appreciated..

Tixy

It might be an option just to send token payments short terms for the next couple of months or so while you get your priority water arrears sorted - in which case anything from £1 to £5.

Have you had any professional advice from a charity regarding DRO? if not and you think you would only8 be just over £50 it might be worth speaking to them as there may be costs they would allow you don't realise that would take you under £50.

CCCS_Sarah

indebtmummy wrote: »

Hi , thanks for the reply.. so token payments are not my best option , i have no assets at all , council flat on income support and child benefit and no car.. i live hand to mouth every day with my children : ( .. one bill comes in and i miss another to pay it hence being behind on water rates.. i am just at a loss now.. as for the DRO i am unable to go for it as i think i am just over the £50 a month mark.. any more help appreciated..

It would be worth looking into if you are going to have no major changes to your situation. Once you have put a detailed budget and included everything from clothes, travel costs and priority household bills it maybe that you have a lot less than you think left over. If it’s not an option, then you can always look at making reduced payments and look at something like a debt management plans.

There are loads of different solutions, its just a case of finding the right one for your situation.