Advise Please?

Paul_UK_6

Hi,

I have debts of around £45k which are being managed by a DMP with CCCS who have been superb.

Recently my business is doing well and I am beginning to start saving. I presently have around £4k saved and over the next year I should be able to at least double it.

My question is: Is it possible to make single payments to creditors to clear the debt? Would they accept a percentage of the amount owed just to close their books?

I owe:

Egg Loan: £19k
HSBC overdrafts: 1 x £7k & 1 x £2k
Cahoot loan: £7k
Cahoot card: £2k
MBNA: £6k

Thanks in advance.

Paul.

lynzpower

My understanding is that if you have a lump sum say 4k, you give it to CCCS and they distribute it evenly to each creditor .

Others may be able to help more though, I dont know for sure, just what I read on here

Zulu_Dawn

My suggestion is to give it a go.

Contact MBNA or one of your other creditors. Say a third party has offered you a sum of money to help clear your debts and would they be interested in accepting "£x" in full and final settlement of your outstanding amount. You could try 50% of the outstanding balance and see what happens. They can only say no and they cannot then ask for that money as it is not yours to give.

If they say yes, get something in writing and Bob's your uncle.

Have I missed something? I'm new to this so this could all be rubbish but I don't see what you have to lose. You could also check with CCCS, though I would not be inclined to tell them it was your money.


Good luck and let me know how you get on.


ZD

lynzpower

I think Ive read Zulu Dawn that when you have them running the DMP, say OP wanted to settle up the cahoot debt & called them , they wil offer a F&F I guess, but the problem Ive read is that obviously they need to let CCCS know and thus this can collapse the DMP.

Id speak to CCCS if you can get hold of anyone, I believ ethey are pretty busy

Zulu_Dawn

Hi Lynzpower.

I guess that's possible. I am on a self-administered DMP and plan to do the same thing once I have some savings (in about ten years time ), hence my interest.

ZD

PS Silly question but who is OP?

HairyHandofDartmoor

Original poster. Yes, speak to cccs or you will confuse the arrangements they set up for you.

Paul_UK_6

Many thanks for the advise.

I will talk to CCCS first to see what they say, but under a IVA they may only get 25% after 5 years, 50% paid straight away surely is attractive?

Paul.