F&F offer, what do you think?

twoflower169

Hi all,

Would like some thoughts on our situation:

We currently are on a DMP with cccs, we will in then next few weeks be receiving an inheritance of around about 15k.

Our current debts total about £60500, of this 30k is with NR in a loan that is part of out together mortgage. Initially when we spoke to cccs we were going to have an IVA and after NR originally said yes (being the major creditor, they had to say yes) they changed their mind as they worked out they would get more money back on a dmp, any this also meant they required us to change to a interest only payment, which they used as part of their calculations for the life of the DMP but they then wrote us a letter after we swapped to interest only saying they would only allow this for 1yr.

SO what we are proposing to do is: use some of the 15k to pay off arrears on NR loan (cos of course they didn't stop interest) which is around about £500, then get NR back to mortgage and loan paying full amount like before and then using the rest for f & f offers (well actually get the others to agree on offers and then put NR back to normal) We have approached NR about this and of course they nearly snapped our arms to say yes.

What do you all think, what amount should we start offers at? My only concern is what happens if we dont get all to agree, but some do, could NR then accuse us as treating them unfairly and pull out of dmp if we are unable to pay enough of them off that we have to stay on dmp. To add to our fun, I am currently pregnant with our 2nd child and am due to start maternity pay in dec, which of course will affect our in and out goings meaning there will be less funds available, do we put this in our offer letter?

Also using the template letters, it words it in such a way that it says this is a one time offer and will be withdrawn after so many days etc, where does that leave you if you go in at a lower offer and then you go back with another (if they refuse 1st offer), are the creditors likely to say erm.... you said this is all you had lets push to see if there is any more!

Sorry this is a ramble, any thoughts most appreciated.

bottleofred

Hi twoflower,

Regarding the full and final offers, I'd initially offer as low as possible. I offered 20% for debts of £10k and was lucky enough to settle, but had to pay 40-50% for smaller debts (around 1k-3k). However, even if you offer the 20% initially and they refuse it, they may come back with a counter offer of say 60%. Don't accept this, simply make another counter offer of say 25% and take it from there. However, don't pay any money as a full and final settlement until you have received written documentation from the companies in question stating the amount agreed is as a "full and final settlement of the debt". This will ensure they or another dca can't come after you on down the road. If some refuse to discuss a full and final settlement, simply move on to another creditor and see how you get on. Remember though, don't settle at any cost, as you want enough money to settle as many accounts as possible.

twoflower169

thanks bottleofred for your suggestions! All helpful.

Pott5y

Hi twoflower,

I am too in the process of offering full and finals, though I hit mine all at once with pro-rata offer (Family member helping me out).

Admittedly I started at 40% and two out of my 7 creditors accepted. I am now going back with the same offer to the other creditors even though they refused. I think they may think ahh we will just refuse the first offer and see them go higher, so I am going to write to them with the same offer and say that if they refuse I will withdraw the offer and just carry on with my DMP (which will take 20 years to pay).

As BoF said always get anything in writing and on top of Full and Final make sure they state that you will be releasesd from all liability for the debt and that neither they nor another company can pursue. Keep all correspondance for 6 years. You can also try and get them to mark your account as sattisfied with a credit ref. agency.

Also I know the money is being inherited but it is probably still worth saying that it is from a member of your family otherwise they may decline but expect you to include it within your DMP.

Good luck.

Arfhurdaly

I'm trying F&Fs, but have got none to accept out of 4 creditors. And generally not found it easy going.

Which creditors have accepted F&Fs?

Pott5y

My two acceptances were Independant Finance and Wescot (for an MBNA loan). :T

I know it s very difficult but the banks are never going to make it easy for anyone to pay off a percentage of what they owe. Just keep going back and you may get a bite. Different people open the letters everytime so you only have to get the right one sometimes who needs to quickly make up their target figure for their bonus etc..

My other creditors have either declined or just ignored my letters, :mad: so I will try once more then just carry on with my DMP for a while and maybe try again in 6 months or so. (I am lucky that all my creditors have frozen interest and charges so I am at this time actually reducing my debt (albeit very slowly). :T

Arfhurdaly

Thanks Pott5y. I think perhaps F&Fs are easier to get success with, if you are on a dmp.

twoflower169

Hi all,

I will ask for those letters and wont pay till they arrive.

Also will say that its from family and not inheritence.

Can I just ask if your offers are turned down would you just keep the money to one side and go back again with an offer 6months? Or would you just pay the money to your dmp if you get no joy, and just keep paying the dmp?

Pott5y

I would keep the money to one side and try again in 6 months or so. I would not put into the DMP as it will just get swallowed up.

twoflower169

Cool. Thanks pott5y.