Do TPA's really work?

Fergy123

I have just arranged debt help with CCCS and they have recommended a TPA. Just completed the letters to send off to my creditors offering £1 a month towards my debts.

Which has got me wondering - do these work? would a company that I owe thousands of pounds accept £1 a month (all be it on a temporary arrangement)? I have no experience with these and really don't know what to expect next?

Tixy

Well creditors don't like token payments (as you might guess) but if they think you cannot afford anymore and there are no other ways to recover their money then they prefer token payments to no payments. By making token payments you are keeping the debt 'live' and should your circumstances improve they'll hopefully have chance to recover more of their money.

You'll probably find they'll say its not enough and say you need to pay more but just stick to the facts that you cannot afford more and that your circumstances haven't changed.

If the situation continues long term then creditors willl try to assess whether there is any other way to recover the debt - such as whether you have assets or a house. If so they could consider court action to try to realise these assets. But certainly in the short term just keep making the payments and ignore any threatening letters the send.

If they start phoning you there are template letters you can send to stop phone calls and keep everything in writing.