Help Newbie.. possible F&F?

hcurves

helloo

became a single parent last year. Moved into rented accomodation. Young kids. part time term time only employment topped up with wtc & ctc, hb and council tax benefit.

Currently owe £1007.04 to cap one.. now with fredricksons
currently owe £4k approx to halifax (loan) with Blair oliver scott
currently owe £3k approx to halifax (cc) with Albion Collections
currently owe £400 argos card (still with them)

not paid anyone since about oct last year.. and theyve only had token payment since july 2010... yes i know ive buried my head but knew it was better for them to let them default.

Cannot afford anything more than token payments but my dad has offered to try and settle these if they would accept greatly reduced F&f

spoke to payplan who cant help
national debtline suggested debt relief order

have put together this letter to offer ... any thoughts guys?

suggested amounts are £300 to cap one
£1k to both BOS, and Halifax and £200 to argos




I have been in contact with PayPlan, but they have refused to handle my case as I have insufficient means to cover living expenses, even without paying existing debts.

In my discussions with the National Debt Line in my attempt to finance a DMP they have informed me that as I have no significant assets it would be in my interest to start Debt Relief Order Proceedings.

Nevertheless as a responsible debtor, I wish to find a way to amicably settle all outstanding debts. I would therefore ask you to accept a notional payment of £1 a month on the debt, but see no point in the future where my circumstances will change having now become a single parent in rented accommodation with two young children.

Alternatively, my father has offered to give me £1000 in order to settle all outstanding debts in full and final settlement on the account.

This offer is made on the clear understanding that, if accepted, neither you nor any associate company will take any other action to enforce or pursue this debt in any way whatsoever and that I will be released from any liability.

I also request that, if accepted, you will make an entry on a credit reference agency file relating to the above account as having been paid and the account closed.

Payment can be made within 14 days of receiving your written agreement of this offer and method of payment alternatively I will commence nominal payments of £1 a month whilst waiting for my Debt Relief Order to be processed.

I look forward to receiving your reply. Please note I am only able to correspond in writing as I do not have a land line or mobile number.

BigCraigJohn

I'd say you are in a good position for them to accept a much reduced settlement. Maybe go in a bit lower and leave a bit of room for negotiation but I think you will have to treat the 2 Halifax debts seperately especially if they have been actually sold.
Also put in that the debt can not be sold and will be settled.

hcurves

How much lower should i start do you think?

My dad is 75 this week and just wants to try and help but would like him to be able to settle as low as is humanly possible. Its hardly his fault that i've ended up on my own with the kids (domestic violence)

fatbelly

30% is not a bad starting point for F&F. But in your case, with a fall-back position of a DRO, you would need to be careful to treat all crediitors equally. So all should be offered the same percentage. The problem will occur if one accepts but the others don't, and you go for a DRO having treated one creditor preferentially.

Honestly, I'd thank your Dad for putting £2500 on the line for you, accept £90 and go for a DRO.

Why would you not want this?

hcurves

My dad is just trying to help... and if I can let him sort this he will be happier

Pott5y

I would start by offering them all 25% of the outstanding balances. This equates to around £2100. Show this in a table showing each creditors outstanding amount and then in the column next to it the 25% offer
eg.
cap 1 - Owe £1007.04 F&F offer £ 251.76
halifax (loan) - Owe £4000.00 F&F offer £ 1000.00
halifax (cc) - Owe £3000.00 F&F offer £ 750.00
argos card - Owe £ 400.00 F&F offer £ 150.00

This way they can see you are treating them all fairly. I would send copies of the letters to all parties involved you never know they may welll accept.

keep all correspondence for at least 6 years and do not part with any money until they confirm all points in writing, especially this bit:

This offer is made on the clear understanding that, if accepted, neither you nor any associate company will take any other action to enforce or pursue this debt in any way whatsoever and that I will be released from any liability.

Good luck

fatbelly

hcurves wrote: »

My dad is just trying to help... and if I can let him sort this he will be happier

You can sort it out for £90 with a DRO

Your strategy risks spending £1000 or more of your Dad's money, then getting a Restrictions Order when you do go for a DRO.

You asked for advice from an independent fee-free debt advice charity...but you're not taking it.

hcurves

yes I asked for advise

and i told my dad what was happening and he wants to try and help.... he doesnt want me to go down DRO unless i have no further options available.. He's 75 and comes from an era where they paid cash and he still does. He wants me to try and sort this but as I kept explaining to him I barely have enough to live on

I said he'd be better keeping his money but he says helping makes him happier