Full & Finals

boo80

Hi DFW's, it's been a while since I've been on here...

I've been on a self managed DMP for almost 2 years now. I owe MBNA about £600 and Capital One about £1400 (and LTSB loads!!)

I've got about £350 'spare' due to selling my car (for scrap), Christmas money, and I'm due some expenses back. Do I try to do a F&F deal with one of these companies? What kind of figures would they accept?

I'm hoping to go to university in 2012, which is going to be really hard finacially anyway as I have 2 young children, so it's time to try to get some of these debts paid off!

Thank you for any advice you can offer. Boo.x

boo80

Just re-calculated, MBNA is £535. What would be a good offer?

Tixy

Hi boo - is the debt still owned by MBNA do you know? do you still pay them direct?
Does this have a default on your credit file or an arrangement to pay marker do you know?

Was the card opened before April 2007 and if so have you ever done a CCA request to them?

If its still owned by them but has a default then I would probably start around 50% but be prepared they may want more than that.
If there is no legally enforceable CCA then you could offer much much less. If it has been sold on to a third party then again I would start much lower (perhaps around 20%).

Have you seen the national debtline factsheet on full & finals? might be worth looking at that and do you know to always make such offers in writing etc?

Hopelessly_Hopeful

Hi

If you are on a DMP you are meant to treat all creditors the same so the official advice is to split the offer all the creditors something. In reality people to try to either clear up the small ones or the ones charging the greatest interest. You can get full and final advice from National Debtline and CCCS websites. Have you considered offering MBNA 30% and aim to settle for 40-50%.

Good luck

HHx

boo80

Thanks for the replys. Yes, it's still with MBNA, I think it was a Virgin loan originally taken out in about 2004. I only pay them £16 per month, but have just done a new SOA as I'm worse off now than I was a couple of years ago, and that suggested I should offer them £3.76 per month!!

I haven't read the factsheet, I'll google for it tonight. Thanks Tixy. x x

Thanks HH, 30% sounds nice! Must be worth a try anyway! x x

Tixy

Here is the factsheet http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=24_full_and_final_settlement_offers

I'd say any offer is worth a try, worst they can do is say no and then you can either increase the offer a bit or just carry on as you are.

If you are offering to just one creditor people often advise you to say that in your offer letter that the money is being loaned to you by a family member on the condition that it pays off the debt in full (this means they cannot refuse the offer but then ask for the money anyway as they know you have it). Also say if they do not accept your offer by X date (give them 2-3weeks or so) then you will make the offer to another creditor instead (this helps them focus on your offer!).

boo80

Thanks again Tixy. I've just been on your link and have done my letter, printed it out and it's ready to send. Wish me luck!! x x

fatbelly

Just to chuck something else into the mix...

If you are considering (even as a remote possibility) a Debt Relief Order, it's best not to pay off individual creditors as you would have to answer 'yes' to the question of whether you have shown preference to any creditors in the past two years.

If you are sure that you have enough free cash to sort out all creditors then F&F is a good strategy but if you have debts under £15000, no car (or one worth less than £1000), live in rented accommodation (or at least don't own property) , surplus income less than £50 per month, and no prospects of improvement in the next 12 months, you might be better having a good look at a DRO

boo80

Thanks FB. DRO's weren't about when I started my DMP, so I don't really know anything about them, but I don't think it's something I'd do. My debts are just under 15k, and my car has just died, but my OH has a mortgage and I have just over £80 per month for my repayments , so it doesn't sound like it would be a good option for me?

I think I'm just going to try really hard to get as much as possible paid off in 2011. Earn as much extra money as I can, and sell everything we don't need on ebay, then make f&f offers to my creditors and see how it goes. I also need to pay off my LTSB overdraft asap as they are horrible and hardly give me any leeway. I think the total amount owed has gone down about £60 in the last 2 years!! Maybe concentrate on that one next then!!

boo80

Hurrah!! I've just spoken to LTSB and my account is going to recoveries! No more interest!! No more charges!! Yay!!

fatbelly

boo80 wrote: »

Thanks FB. DRO's weren't about when I started my DMP, so I don't really know anything about them, but I don't think it's something I'd do. My debts are just under 15k, and my car has just died, but my OH has a mortgage and I have just over £80 per month for my repayments , so it doesn't sound like it would be a good option for me?

Hmmm. For someone on a 15-year debt management plan, a DRO (debts written off after 12 months) sounds good to me.

The only condition you think that you would not meet on your figures is the £50 per month surplus. I don't think an Approved Intermediary would have too much trouble getting £80 down to £50. That's only a difference of around £7 per week

Here's a factsheet put I won't push you any further on it.

Factsheet Debt Relief Orders