Settlement payments

Ant07

Hi,

Falling ill, leaving my job, thinking its all okay whilst working to be using this card and that, I now realize how pathetic I have been and regret it all immensely.

I have been out of work for 2 years, last year I have managed to get the debt collectors off my back by agreeing a payment plan, which I pay regularly. One of them is a CCJ.

I want to now find a way to pay them off quicker. It would take me the rest of my life to pay them off in full, I wondered how to go about offering them a settlement payment. The debts are as follows:

16000 loan
7900 credit card hsbc
500 current account hsbc
3800 ccj laura ashley
8600 mbna

CCJ does not accept a settlement payment. However, I wondered if HSBC / MBNA may?

Although I had to leave my job due to being ill, any insurance cover I had on the cards, I could not use as apparently I was referred to a counsellor rather than a specialist. So I paid 50 pounds a month for nothing all that time.

Any advice, I would appreciate hugely. Please don't make me feel any worse than I do already. I can not tell you the pain I have gone through last year. And I never want to see another credit card. It still gives me nightmares.

Thank you so much

econnin

You can always call the companies first and have a 'without prejudice' conversation with them- and find out what their stance is on settlements. Might be worth you seeking advice from CAB also as they should be used to dealing with f&f's.

Pro-rata the lump sum between you debts so it is a fair offering. Put your offer in writing, stating if accepted it is in full and final settlement of your liability to the company and any third party. Support it with a full financial declaration and documents. Most companies will try to negotiate with you, just stick to your guns and be honest in that you cannot get more. But I do stress, if you do not feel strong enough to take them on in negotiations, then get a representative to do it for you.

Tixy

Hi

This factsheet may help you - its aso got a template letter - http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=24_full_and_final_settlement_offers

If your debts have been defaulted and you are paying less than the original minimum amount then they may well accept a settlement.
The best settlement discounts are given once a debt has been sold on to a third party debt collector.
Remember the key thing is to get in writing that it is a full & final settlement before you make any payment.

Whilst the factsheet suggests you pay all off at once it is possible to offer to one debt at a time. Some people write in their letter that the payment is coming from a family member so that if they refuse the offer they cannot then turn round and ask you to start paying more knowing you have some money saved up.

Ant07

Is it possible to negotiate a settlement with a CCJ also?

Ant07

Also, if I was to raise 8,000 - 10.000 pounds and offer settlement on the above (pro rata) do you think that is acceptable?