I just cant get out!

peterb1982

So Ive been in a debt management agreement for 5 years, and Ive come to the end an there has be £5,500+ thrown ontop of the debt I cleared. I made an offer of £3,500 to creditors to clear the debt but they have all rejected the settlement. I dont know what to do our where to go. Im out of money and cant keep up the re-payments any longer.

MrsTUS

peterb1982 wrote: »

So Ive been in a debt management agreement for 5 years, and Ive come to the end an there has be £5,500+ thrown ontop of the debt I cleared. I made an offer of £3,500 to creditors to clear the debt but they have all rejected the settlement. I dont know what to do our where to go. Im out of money and cant keep up the re-payments any longer.

If you're out of money how come you could afford to offer them £3500? :think:

millionaire_in_training

What a shame after 5 years. Can your DMP company give you any advice on what to do? Good Luck

peterb1982

MrsTUS - I have very helpful parents who were about to get together that amount to try clear the debt and then I repay them once I'm out of oweing ££££££'s of interest each month. But the £3,500 is only like a 60% settlement to each creditor and they have all said no. And I cant ask my parents for more, they are ging above and beyonf with this amount.

millionaire in training - My DMP company dont seem to be very good in terms of trying to get this sorted. they have helped over the 5 years but now they are just saying there isnt really much they can do. So I dont know what to do. Ive called ombudsman and loads of debt companys and even national debt line who all pretty much say "well there isnt much you can do".

skintandscared_2

Are you on a DMP or an IVA?? Who are you with - is it CCCS or PayPlan??

Tixy

Do you mean this is charges & interest?
Did you know that it wasn't frozen (eg from the annual statements?) Did you or the DMP company try to get it frozen during the DMP period?

How did you make the £3.5k offers? did you do this in writing? did you do it or the DMP co?

Is your DMP company one that charges a fee? if so and if you cannot get the offers accepted at the moment then I would cancel your agreement wth the DMP and make your own arrangements to continue paying creditors each month but saving the monthly fee cost. Then try again with F&F offers after a couple of months

peterb1982

skintandscared - im with paypal

Tixy - the interest was frozen but they are saying this is charges and back interest. Which paypal said could happen, but my job has changed and so has my living situation so my monthly payments will have to go down which means the interest will hang around longer and ill always just be paying the minimum. I just want to move on and put the debt behind me. And yes it was the company who made the offers on my behalf.

Tixy

Its actually quite rare that this does happen. And when it does I'm not sure if there is something that triggers it.
Presumably its not all your creditors who have done this?
Maybe you'll have to carry on, drop payments down because of new situation (maybe quite a bit down) and then once they see new payments they'll be happier to go for the F&Fs. It might also be worth trying the F&Fs yourself. Not saying that payplan are not good at what they do, but if you do them yourself you can try to play them off against each other
I.e. make an offer to one, explain its a gift from a relative on the condition it clears a debt in full and tell them if they don't accept within 3weeks that you will offer the money to another creditor.

peterb1982

ok, maybe I'll try that, thanks. I just really wish I could get an official 'these are your options' from somewhere. So I can lay it all out and choose my path. Just frustrating, but then I put myself in this situation so there is a perspective to it I guess.

MoneyWasting_Expert

Good Luck Peter hope you get these debts sorted.