RE : Advice - debt settlement

monkeymonkey55

hi - I am looking for advice for my mum. She has £47k of debt which she is paying a small amount towards each month. We have the opportunity to look at settling this debt as we are in the process of selling my nans house (who passed away three years ago) and the proceeds are for my mum but held in trust between my mum, myself and my sister. I am not sure how to approach this with the bank/debt company that my mum owes money too - if we can agree a reasonable settlement (50% or less) then we will still have enough money to purchase a house for my mum which was the original intention. Any advice on this situation would be gratefully received. NB/ The reason we have my nans house in trust was to specifically protect it from her creditors. Thanks!!!

fishty

Nail.... Head.... Hit!

If it means getting your Mum out of so much debt then why not give it ago.

Go in much lower than 50% and nagotiate from there.

:beer:

monkeymonkey55

Hi - I investigated on the internet and found a company that said £47k of debt could be settled for £14k (but I assume that they would charge a fee in this?). We would be happy to settle at this kind of level but I would rather not pay a fee - but have no idea in the best way of approaching my mums creditors - any advice? Thanks.

monkeymonkey55

fishty wrote: »

Nail.... Head.... Hit!

If it means getting your Mum out of so much debt then why not give it ago.

Go in much lower than 50% and nagotiate from there.

:beer:

What is a good position to start from? Ideally we would want to settle at 30% level max.....!

debtfreeian

Who holds the debts? Is it the original creditor or debt collection agencies?

Anecdotally I hear that you can settle for much less with a DCA. What have you got to lose from starting out at 20%. It'll probably be knocked back but you don't know unless you ask.

Also, make sure any settlement you make ensures the debt is settled in full.

monkeymonkey55

debtfreeian wrote: »

Who holds the debts? Is it the original creditor or debt collection agencies?

Anecdotally I hear that you can settle for much less with a DCA. What have you got to lose from starting out at 20%. It'll probably be knocked back but you don't know unless you ask.

Also, make sure any settlement you make ensures the debt is settled in full.

sorry what is a dca?
I believe it is now with debt collection agencies.

fishty

monkeymonkey55 wrote: »

sorry what is a dca?
I believe it is now with debt collection agencies.

You answered your own question there.

monkeymonkey55

fishty wrote: »

You answered your own question there.

yep i realised once i had written it...!

monkeymonkey55

Hi what is the usual level of debt settlement?