Full / Final / %

tommytynan123

Shortly (2 - 3 months) I am receiving a lump sum as part of my redundancy package. At face value I could pay all creditors the present balance/arrears. BUT I don't want to !!

So when I start the haggling (and I have already got great advice from this site on where to start the haggling as %) is it wise to
a. disclose that my income (as such) has dropped to zero (won't mention the pension) + any benefits
b. use the fact that they may be faced with token payments for years

as a lever to make them accept a lower amount.

If, somehow, they get wind of my lump sum, can they ask to see the figures ??

Footnote: Reading and using this site has really got me into a save save mode. My 2 sons recently said ''Dad, when you get your money are you going to buy a new car ?'' Now normally I spend about £500 on a car - if it goes it's fine. I replied with ''No but I may spend a bit more. They were both gobsmacked when I said ''I may go up to £550'' Whats even funnier is that, as they are both insured for my car, are my threats to buy a 3 wheeler.
Thanks guys.

Dealingwithdebts

Sorry if this sounds like a stupid question but if you are going to have the money available to pay off your debts in full I don't understand why you don't want to?

alona1

I wouldn't want to either, after having received defaults, paying interest and a rubbish credit file, and you can get a reduced settlement, go for it. I'd start offering at 50% and see what they come back with, the ones where they have defaulted and/or passed to a DCA will be more likely to accept something that low. You may need to offer a bit more if its still with the original creditor and no defaults, probably about 75%. Good luck x

king100

Surely as stated you would want to pay off your debts.

Lets say you got 10k.

5k debts at what apr lowest apr sonething like 8%

or you stick that 5k into an isa and get what maybe 3% if you lucky.

Therefore your missing out 5%.

Personally pay your debts off.

Go for the reduced settlement and try and get as much off as you can. They will remain on credit file for 6 years.

Dealingwithdebts

alona1 wrote: »

I wouldn't want to either, after having received defaults, paying interest and a rubbish credit file, and you can get a reduced settlement, go for it. I'd start offering at 50% and see what they come back with, the ones where they have defaulted and/or passed to a DCA will be more likely to accept something that low. You may need to offer a bit more if its still with the original creditor and no defaults, probably about 75%. Good luck x

Fair enough, I guess I've just got a different view of my debts than some others.

I see what you mean about the defaults and interest and things but the way I see it is that I borrowed and spent the money to get myself in debt, fully understanding that I would have to pay interest on what I borrowed and pay charges when I went over my limits. Therefore I owe the full amount!

I thought that if they accepted less than the amount owed that's when a mark went on your credit file and if you have the means there to pay debts off in full then that would be the best thing to do to avoid these marks. I fully agree that if someone cannot afford to pay the whole amount but could contribute something then they should try their luck and see what the creditor will accept but if the money is available then the sensible thing to me would be to pay it!

Just my opinion though, and no harm or offence is meant by it

mcjordi

If the debts are with DCA's then you may hit lucky starting at 30% of the balance.