Personal Challenge : Clear £42k in 6 months

ivan_the_not-so-terrible

Just interested in why they are accepting this and loosing so much money? Are you threatening going bankrupt so they figure best get some cash whilst they can? If you are, is it a real threat or just a kind of fraud? If not threatening bankruptcy, why are they playing ball?

I'm no fan of financial institutions, but what you gain must surely cost the rest of us as any loses are always passed on to the customers.

NeverEnough

Ivan, it sounds as if the OP has actually defaulted on debt repayments dating back to 2009, so these would have been handed on to DCAs by now and showing as Defaults on the CRAs reports. Anyone can make an offer to settle a defaulted debt - the DCA or the creditor has the option to refuse the settlement. As to "losing so much money", well I think that much of it would be interest, so in fact the institutions are losing very little - losses like this are subtracted from pre-tax profits once written off, and the debt is sold on to DCAs for a minimal amount - only a fraction of what is actually claimed - a debt of several thousand pounds may have been sold, for instance, for only a few pounds to the DCA, meaning that a settlement say, of £1000 for a debt that they bought for £10, still leaves the DCA with a huge profit. OP is doing nothing fraudulent that I can see, nor are they "threatening bankruptcy", but it is likely that their Credit Report has been trashed for some time with not paying the debts and defaulting. At least the OP is trying to get their life back in order and all the best to them in getting the amounts paid or settled finally.

Mowgli87

Really inspiring Zharrt!!! How are you getting on with the long hours? Any more paid off?

wizziwig

Go for it - I want to cheer you on, you have the opportunity to clear these nagging debts. It will be hard work, but you will do it if you are dedicated.

May I suggest you save up a lump sum and then offer a cash settlement, you may get a nice surprise when the creditor (of his agent) accepts a much lower sum. It will save you money.

Good luck, and let us all know on MSE Forum, how it goes. Keep well, you will need your health and strength to go at this until Aug. :T
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Caroline_83

I do 12 hour shifts and they're hard work so fair play to you.

I also paid off a debt today and it feels amazing! I'd also go with your idea of signing up to Credit Expert and viewing your report regularly. I have been a member for some time and it's nice to have your credit history in front of you clear and simple. They update overnight so once you pay off a debt, the following day it should show that it has been settled. It's better than trying to keep tabs on your creditors in your head!

I have one more debt of £1509 left to pay off and my aim is to do this by my birthday in Nov! Will use your thread as an inspiration! Good luck!

dbt3mummy

Good luck on your personal challenge.

Do you mind me asking what your occupation is?

cloudcuckooland_3

[QUOTECan I ask why would a CC company knock 50% off your current balance if you are managing to make the minimum payments?

][/QUOTE]
I have found that one of my creditors (1st credit who are collecting a CC debt from me) often make repayment offers for a quick settlement. They are something along the lines of - if you pay £5K we will pay £3K. Sometimes they offer matching payments ie if I can pay £1K we will pay the same.The total amount I owe them is about £12K. They issue these offers every two or three months. The only snag is I never have this amount of money to put down because I am busy paying off everyone else. The debt I owe them has no interest, but I have a couple of high interest debts I need to pay first. (I am not able to transfer these to 0% cards as my credit rating is very low).
Just thought I would let you know that there are 'offers' around if you are able to take advantage of them!:)

zharrt

An update basically I failed in my overall goal of getting everything paid off, but from a position of owing £42,988.90p I have brought this down to £22,624.02, meaning I have paid, or had it agreed to settle £20.364.88p.

The job (I started as an IT Contractor) didn't last as long as I thought it would, the costs associated with working away were higher than I thought but I am still very happy with what I have achieved. And thought I would share a few of the things I have learned.

Firstly, only not knowing or admitting the extent of the problem is the scariest thing, once I sat down, spoke to the people I love and let them offer help, be it moral support or my mum (who actually works for a Debt Recovery Company, ironic I know) fighting my corner when it came to obtaining settlement figures I realised I could never have done this alone.

Secondly not having money is not the end of the world, I had the kids come up and see me for a few weeks in the summer holiday and we had a great time doing things that were free, or cost very little, I didn't need to take them to McDonalds or go to a theme park when i could make a packed lunch and take them to the park, or one of the many free museums that are out there. I have learnt to budget properly, and although I have been living within my means for sometime now I have learnt that I can treat myself every now and then, as long as I know what I want in the long run.

So I am nearly at half way, I have now gone from a situation of paying off as much as I can, until I find my next contract I am controlling my last 4 debts, working out what I think is a fair amount I can afford on the limited income I am paying myself.

I could have paid more off and struggled now, but I realised that its about control, as long as I am in control I will not get into the mess I once was in.

Here's to the next 6 months when hopefully I can be debt free.