Debt Repayment

paul2468

Hoping that somebdy can point me in the right direction, When i spilt up from my ex i also fell unto debt, after they had built up i went to a debt managment company.
I have been paying them £100.00 per month for the last 5 years and they on my behalf are paying my creditors.
My mother has said that she would pay them off for me as we are sure that the company is taking a fair wack themselves.
I now owe just over 6 thousand pounds between 4 companys.
what way should i go about this ? should contact the companys direct or should i let the debt managment company negotiate for me ?.
And if i did it myself what type of money should i be looking at offering them.
Thanks

Debt_Free_Chick

Can you tell us the name of the Debt Management Company please? I can provide an answer, once I know who they are.

Cheers

paul2468

Debt_Free_Chick wrote:

Can you tell us the name of the Debt Management Company please? I can provide an answer, once I know who they are.

Cheers

Sorry a firm called Debtcare...

Debt_Free_Chick

paul2468 wrote:

Sorry a firm called Debtcare...

I am also convinced that they have been taking some (a lot?) of the money you've been sending them and keeping it as a fee. That's money that could have helped to reduce your debts even more.

Do you have any paperwork from them? Find all the papers and read through carefully. Any fees should be clearly explained.

There's a little info on their website (is this the right company?)

http://www.debtcare.moneymart.co.uk/questions.html

you can manage this yourself easily. There's a complete DIY pack here. Download it and read it carefully - get your mum involved too as she sounds like a savvy lady

http://www.nationaldebtline.co.uk/england_factsheets/debt_advice_england_wales.php3#3

As soon as you are prepared, by working through the pack, write to Debtcare and cancel the agreement you have with them.

You can call the National Debtline on a freephone number for advice or post back here and we'll help.

Good luck. Let us know how you get on.

paul2468

Thanks for the info, i do know the names of the four firms ...or collection agencys that debtcare are paying i owe £1,94828...£1,052.87 £791.03 and £1,846.57 so they are the four amounts.....how do i get an idea of how much of an offer that they would accept, as i want to keep it low as i will need to pay my mother back..

Debt_Free_Chick

If you mother is giving you a lump sum, you need to pro-rata it amongst all your creditors as explained here. Follow this exactly

http://www.nationaldebtline.co.uk/england_factsheets/factsheet_24.php3

They will probably settle for between 50%-80% of the outstanding debt. Start with 50% and negotiate. But get everything in writing!

paul2468

After advice i telephoned the companys myself that debtcare are dealing with and asked them what they would take as a full and final offer.
one said £1200 for a debt of £1950
another said £734 for a debt of £1000
another said £1270 for a debt of £1850
and the last one acting for provident who i owe £750 said that provident would not take offers.
I know i will need to put this in writing but do you think i should go with the offers above or try & get them down even more ?

Xbigman

I'd certainly phone provident and get heavy because you have nothing to lose. Ask to speak to a supervisor or manager. Tell them your mother is hesitant to write a check to them and you really really need a reduction to get her on side. If they still refuse ask for written confirmation that they refused, tell them its for her. Its meaningless as such but asking for things in writing can sometimes stir it up. Don't get off that phone without a fight.

Aside from that the other three look fair offers. If you have to accept all four, then do so.
Regards



X

Nicky_3

If you are a bit dubious about doing this yourself, go to Payplan. https://www.payplan.com Creditors prefer to do Full and Finals via a third party for some reason. Payplan will work out how much to offer each of your creds and will take no fees for doing it. All of the money you offer goes to your creds.

The only reason I suggest this is if you are a bit worried about doing it yourself and because it wont cost you anything to do it. Otherwise, carry on as you are. I wouldn't let the creds know that you already have this money by the way, just say there might be a chance that you could get hold of some money.

Good Luck