DMP Settlement offer help please.

circus_48

hi all.

I have a DMP with Payplan for a remaining balance of £39K. My Dad has kindly stated he will help settle those debts ( only if full and final) he can give me £20 K.

I have contacted some of my creditors today, some were quite helpful and accomodating, others were less helpful demanding full payment. Payplan were unwilling to negotiate at all with the sum I have offered, however, I have today managed to negotiate my debts down to £26K as final settlement. many offered to renegotiate when I had a firm idea of the funds I could raise. I could raise, reluctantly, another £4K.

I need some advice on how to deal with the difficult creditors. If all others accept near 50% payments in full and final settlement, how should I approach the ones who are firm. I need rid of the stress these debts give me as I have not been well, mainly because of the difficult situation I got myself and my family in to. As a result of my medical difficulties, I may well lose my job but I am qualified and 'clever' enough to secure other employment.

I really need rid of these bad debts for my sanity, and your help in what to say further to these creditors would be most appreciated.

Many thanks all.

circus_48

May I say that the £4K would come from my childrens bank accounts; money that we and relatives have put in for birthdays etc over the years...this is something I desperately want to avoid and the subsequent knock to my self esteem ( although It would be paid back eventually)

M

circus_48

Bump...............

circus_48

Bump.........

circus_48

Hi all.

I would love some help with this one..Please ! :-)..if most of my creditors accept just over 50% ( see above) do the others have to follow??

Thanks.

M

ruby1968_2

Hi circus48

I proberly wouldn't touch the childrens funds, and stick to what you have already raised, from my own experiance in the past and advice I have been given over the years, if the company ended up taking you to court it would cost them have another word and remember to keep any copies of conversations you have as this will stand in good steed later on, lay it on the line that all your other creditors have accepted your offer that you have made and then put the ball in their court so to speak by stating that this is what you have on offer for them and no more stick firm with them their only trying get more from you for their benefit.

hope this might help. but look at other advice also as it can differ.

fatbelly

circus_48 wrote: »

I would love some help with this one..Please ! :-)..if most of my creditors accept just over 50% ( see above) do the others have to follow??

No, it's entirely down to negotiation.

Are you doing this in writing? Have you followed the guidance on the National Debtline factsheet?

Factsheet | Full & Final Settlement offers

circus_48

Thats great thank you. CL finance are unwilling to go below 85%, Egg want 100% and experto Credite want 80%. Barclays have gone as far as 53% and I am waiting on alliance and leicester. I am negotiating over the phone at present but will bind all agreements in writing and get my Dad to make the final payments if these !!!!!!s shift. !!

This site is a wonderful source of help and support. Thanks.

fatbelly

circus_48 wrote: »

Thats great thank you. CL finance are unwilling to go below 85%, Egg want 100% and experto Credite want 80%. Barclays have gone as far as 53% and I am waiting on alliance and leicester. I am negotiating over the phone at present but will bind all agreements in writing and get my Dad to make the final payments if these !!!!!!s shift. !!

This site is a wonderful source of help and support. Thanks.

53% from Barclays is not too bad.

Egg are always awkward - but will sell the debt on to a third part eventually

CL finance are a bit keen on court action. Is this a small one?

If Experto Credite (stupid name) OWN the debt, they probably bought it for 6-16% of the balance figure - keep bashing away at them.

dancingfairy

If you can't get what you consider a fair settlement - ie that reflects the length of time you have been on a dmp, how much is related to interest and charges etc you can always settle those that you can and then continue with your dmp for the rest - obviously they will get more as there are less creditors and maybe try again in 6 months or something?
df

circus_48

Thanks.

I have been on the DMP with Payplan since Mar 2009. I was orriginally paying £260 PCM but I increased that to £400 PCM and paid additional monies when they were available. My health is deteriorating and I really want to get rid of these debts. I have spoken again to EGG today ( call center in India)..on a debt of £6313 I offered £3400. They were incredibly awkward, unwilling to discuss at all what would be acceptable to them apart from 100%!..The lady on the phone asked me all sorts of questions, medical details, other amounts owed, to who, my Dads occupation and so on..I told them I was getting very frustrated with their questioning and saw no real relevance ,afterall, I am on the phone trying to resolve a situation that is mutually agreeable. I eventually asked of £4000 would be acceptable. They have referred it and will let me know.

Experto Credite are the smallest creditors owing just £1129, they said they would settle on £900 but are now considering a much lower offer. Barclays have been absolutely fantastic.

God this is hard work!!