DMP Full and Final settlement offers

mikethesaint

hi,I am new to all this but have been struggling on DMP with CCCS now for 4 years paying £450 a month,my original debt was £65k(business related but sole trader)this rose to 90K whilst negotiating DMP and making token pyments.I have never missed a payment on DMP and debt is now down to £49K,this is after paying reduced settlements to 4 creditors,my father has intimated he will lend me up to 20k to settle as mant debts as possible,i have written and offered 25% to each creditor but I have not heard from most and been declined by others,only Barclays whom I owed just over £400 have settled in full at 25%.Any ideas on what I should try next,as if i had gone for IVA 4 yrs ago I would almost be debt free but I am 11 years from being so now.Please help as I am working 7 days a week with no holidays so I can pay debt

fatbelly

F&F deals are just about negotiating. If they prefer to receive a monthly instalment for 11 years to a lump sum now, then there's no way forward... unless you can increase the sum to the point where they become interested. Sometimes creditors just won't budge. Sometimes attitudes are different if you back off and try again in a few months.

bottleofred

Hi Mike,

Total agree with fatbellys comments. I would urge you to be cautious though and make all offers in writing and only settle when you have received in writing the words "in full and final settlement of the debt" in the correspondence.

Good luck

Red

mikethesaint

thanks for the advice have so far stuck to that and will try again as time goes by as I may have to reduce dmp payments soon due to imminent change in circumstances,they may be more prepared to negotiate if they are getting less than they are now each month

Tixy

Thats definitely true, if they think it'll take longer to collect the whole debt they'll be more likely to accept. Another tip can be to try offering so your payment would reach them by a month end or quarter end (as they often work on targets and get more desperate to collect if their next bonus is affected!)

mikethesaint

thanks Tixy,that month end quarter end bit may prove very useful in negotiations

mikethesaint

Just recieved a f&f offer from rbs credit card for 75% which equtes to 4245.09,could pay this but am waiting and keeeping powder dry to see if any others offer a bigger reduction which will be more beneficial to me (have spoken to rbs and they wont go below 75%)