Any help - most welcome

Dave312

Can anyone advise me on what to do with this situation?

These are my debts.

Northern Rock (Personal loan)
Debt £10200.00
Have been paying £57 per month for the last 6 months as agreed.

Liverpool Victoria was Morgan Stanley (Personal loan)
Debt £4895
Have been paying £27 per month as agreed. Just sold debt to dlc collection agency who have said in a letter to continue paying my £27 per month.

MBNA
Debt £4725 (Credit Card)
Have been paying £28 per month at reduced interest rate as agreed for the last 6 months.
Just received a letter to say they have registered a default against me.

Santander
Debt £3350 (Credit Card)
Being paying minimum payment every month - (only company who would not agree to reduce monthly payment). I have been late with 2 or 3 payments but i'm now back up to date. Next payment due £75.38 estimated interest to pay £58.48!

Barclaycard
Debt £4105 (Credit Card)
Being paying £47 per month at reduced interest rate as agreed for last 6 months.

HSBC
Debt £4566
Being paying £50 for last 6 months at reduced interest rate as agreed.

I can just about afford to pay the above monthly payments.
However my brother as offered to loan me £8000 to pay some of my debt off.

Northern Rock seem happy to let me pay £57 per month "because i've already payed the interest" (was a £20,000 loan). So I would be happy to continue with that.

Liverpool Victoria (now dlc collections) again I would be fine paying £27 per month but would I be able to make an offer to this new collection company to pay it off?

I was looking for advice on who and what to offer my other creditors as a full and final offer.

It seems to me I need to pay off my Santander debt first because of the high interest I will be paying from next month.

Any advice would be very welcome.

Regards
Dave

bottleofred

Hi Dave and welcome to the forum,

You should always pay off the highest interest amounts first as they cost the most. Regarding the offer of full and final settlements, always make them in writing and say you may be able to get the money from a family member. I would always make a low offer initially of say 20% and wait to see what they say, as they could counter offer to say 50% and then you would make another counter offer of maybe 25%. Some companies though will flatly refuse offers of full and final settlements and as you've been making the payments on time, the companies your currently paying may be reluctant as they'll get more money over time, but you won't know until you ask. However, before paying any money as a full and final, make sure you get it in writing from the companies that this is as a full and final settlement of the debt to ensure nobody else can come after you in the future for the remaining balance.

Good luck in getting sorted

Dave312

bottleofred wrote: »

Hi Dave and welcome to the forum,

You should always pay off the highest interest amounts first as they cost the most. Regarding the offer of full and final settlements, always make them in writing and say you may be able to get the money from a family member. I would always make a low offer initially of say 20% and wait to see what they say, as they could counter offer to say 50% and then you would make another counter offer of maybe 25%. Some companies though will flatly refuse offers of full and final settlements and as you've been making the payments on time, the companies your currently paying may be reluctant as they'll get more money over time, but you won't know until you ask. However, before paying any money as a full and final, make sure you get it in writing from the companies that this is as a full and final settlement of the debt to ensure nobody else can come after you in the future for the remaining balance.

Good luck in getting sorted

Thanks for that information.

Is it acceptable to offer full an final payments to the credit card companies but not the personal loan companies?

Regards
Dave