Negotiating with creditors

gf45

Through my own stupidity I owe £100,000 in unsecured debts. I do have enough equity in my home to cover this and my current mortgage lender will lend me the additional amount - but the monthy payments will be sky high. I know I could move to a smaller house but I want to avoid this as this would be penalising my family for my own stupid problems.

I have investigated doing an IVA but been advised by a few IPs that it would fail due to the high amount of equity I have. I would, therefore, like to know how I go about individually negotiating full and final settlements with my creditors one by one - to try and reduce the overall amount paid back (I do, obviously. want to take responsibility for my debts and pay them back something). Are some creditors known to negotiate? Also, what would be a reasonable percetage to offer in the first instance - I was thinking of 75% - which I could afford. Is there a good letter template to use?

Finally, how do I ensure that they do not chase me later for the remainding debt and also mark my creidt record as paid in full?

Thanks in advance for you help.

Zulu_Dawn

Unlikely they will negotiate at this stage as you are presumably meeting all your commitments. However you could give it a go. Why not try an insignificant one (not MBNA or Egg)and see what they say?

angelavdavis

What about part-mortgaging (to a reasonable level), paying that off the debt and then looking at switching balances to zero cc's and money-saving to get yourself back within a reasonable level?

It might be worth posting an SOA up on the board so others can contribute to the discussion.

CFC

Zulu is right. Here they have a good paying customer, the lenders are hardly likely to say, ok, we'll be good sports, you've got money but we'll let you off seeing as you've asked nicely.

I do feel for you. One of the worst things about debt is that it affects other people around you, not just yourself. I think Angela's suggestion is a sensible one, why not consider it?
And do post your SOA as well - people may be able to help.