Reducing Monthly Payment to DCAs and CC Companies

AndreaE

My sister has substantial credit card debt that she is paying off monthly - some to DCAs and some direct to the card firms.

The amounts she is paying each month seem quite random (and far too high) and were not really based on her income and expenditure when they were agreed.

"Can you afford £100 a month?
"Is that the least you will accept?"
"Yes"
"OK then"

or something like that. There doesn't seem to have been a calculation used.

Her income has reduced even more recently and I have suggested she go back to them all with a detailed income and expenditure spreadsheet showing the total left for debt repayment and the amount she can afford to pay them each month based on their % of the total debt.

For some of these, there will be a big reduction - from £100 a month to £10 a month for example.

My question is - will they accept these offers? Will DCAs react differently to CC Cos? If they say no, what can they do to her? She can only pay what she can pay but what if they say that isn't enough?

She is concerned that this will just make matters worse although to be honest I am not sure of the alternative as the current situation is not really sustainable.

Are we just rocking the boat or might we be able to get the monthly payments reduced?

Many thanks.

mr.ton

Its not for a DCA to say what they will and wont accept - they have no legal authority to any money anyway - only a court does.
So in a nutshell, tell them to get lost & report to the OFT/trading standards if they dont.

DGJsaver

mr.ton wrote: »

So in a nutshell, tell them to get lost & report to the OFT/trading standards if they dont.

Your advice is downright bizzare sometimes and should be treated with extreme caution..

mr.ton

DGJsaver wrote: »

Your advice is downright bizzare sometimes and should be treated with extreme caution..

Oh is that so?
Do tell me on what basis it is bizzare & should be treated with caution?

DGJsaver

because you ALWAYS tell people to report all and sundry to the relevant authorities , but you NEVER specify WHY

And read some of my previous posts before you come to the stupid conclusion i am on the side of the finacnial organisations

mr.ton

DGJsaver wrote: »

because you ALWAYS tell people to report all and sundry to the relevant authorities , but you NEVER specify WHY

Harassment, demanding monies with menace.....need i go on?

DGJsaver

And how does that help the OP if the account is enforceable , and some blinkered old judge treats them as difficult , unwilling to pay etc......and orders an ampunt unrealistic...?

Theres ways of doing things and yours come across as not the right way...

DCA`s and CC`s may do things against OFT guidelines , but me and you both know that they RARELY lose out because of it

NorthernLas

Your sister can only pay what she can afford after she has paid other priority bills. So, she should be looking at what she has spare and offering to pay her debts off and offering pro-rata payments. The DCA may phone more and the CC may pass to debt collectors, but she is making sure that the priority bills are paid. They may say it is not enough, but she should hold firm.

There is a good self help guide on the national debtline website

http://www.nationaldebtline.co.uk/england_wales/pdf/self_help_pack/credit_debts.pdf
http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=14_what_if_a_creditor_refuses_my_offer_of_payment

If she feels uncertain, she should speak with CCCS, NDL, CAB or CAP (see sticky called 'who to contact for impartial advice')

mr.ton

DGJsaver wrote: »

And how does that help the OP if the account is enforceable , and some blinkered old judge treats them as difficult , unwilling to pay etc......and orders an ampunt unrealistic...?
Theres ways of doing things and yours come across as not the right way...
DCA`s and CC`s may do things against OFT guidelines , but me and you both know that they RARELY lose out because of it

They are sure starting to lose out more so than ever these days becuase more & more people now know their rights thanks to forums like this.
I know these forums are seen as somewhat of a nuisance to the debt industry - but tough on them.
You say there are "ways of doing things" - how would that be exactly? - by just paying up when the DCA says so???
Anyway - do you know how the county court system works?
Its not like being on trial, far from it - its all done very informally - there is no "guilty" or "not guilty" involved as the industry would have you believe...
We both know that it costs a DCA/or creditor money to take someone to court & its hardly worth their while just to get something like £1 per month back for example.
Thats why very few of them actually go anywhere near the place & simply rely on bullying/harassment