Selling house, paying debt and lowering mortgage

NoMoneyMummy

Hi, the subject states our current situation.

Our debt is currently, combined, £47,655. We are going to be selling our house and buying one at less than we're selling so therefore dropping our mortgage by the time the deposit is taken off.

By our calculations however, we will only have about 10k in available money to pay the debts. I have worked out figures for every creditor (which are all with DCA's) and could offer just over 20% F&FS. I did the sums using the formula:

Sum available x individual debt % total owed (47,655).

Does this sound completely ludicrous and unreasonable? Some of the debts are over 10 years old.

bottleofred

Hi,

If some of the debts are over 10 years old and there was a 6 year gap between payments they may be statute barred. To be statute barred a debt has to be over 6 years old with no acknowledgement or payment made toward it in the 6 year period. You can check your credit file to see if the old ones are on it as defaults stay on for 6 years. I've had debts in the past when the dca has accepted 20% as a full and final settlement figure, but only on 10k or more and smaller debts have been settled between 30 - 50% of the balance. Make sure any settlement figures and offers are received in writing and contain the words "full and final settlement" before you pay any money. I hope you get sorted out.