what's the best thing to do?

flossieflipflop

Hi all,

I'm due to come into some money from an inheritance soon (not sure exactly, probate was granted a month ago so should be soonish). It's not much but I would like to put some of it towards my debts if I can.

I'm not 100% on how F and F work, I certainly don't have enough to offer F and F to all my creditors and am not sure if you are allowed to offer and F and F to just some of them? (I'm in a dmp)

So bit of background on my debts

Lloyds CC - original balance: £7000, current balance: £3700 No default

Lloyds Loan - original balance: £4000, current balance £2000 Default added April 10

Lloyds OD - original balance £3500 (a lot of charges!), current balance: £2000 default added April 10

Egg CC - original balance £3500, current balance £1900 default added Nov 07

Barclaycard CC - original balance £3500, current balance £1900 no default

I have been in my dmp for almost 4 years and think it's going to take me another 4.5 years to pay it all off at my current payments. I think either lloyds loan or od (can't remember which) is with BLS collections, all others remain 'in house'

I think I'm getting about £2000 from the inheritance so would you advise
1) offering F and F to just a couple of the debts
2) distributing the money pro-rata to all and just reduce my balances a bit
3) put the £2000 into a savings account and try and add to it so I can offer F and F to all in 18 months or so (we may be coming into some more money next year but not 100% sure on this).

Any thoughts greatly appreciated

Flossie

flossieflipflop

Anyone....................

DS4215

You options are:

1). Offer the full amount as a F&F to Lloyds to settle the Lloyds CC.. - its nearly 50%, but you have no default.
2). Offer a pro-rata amount to 3 of the smaller debts (Lloyds Loan, Egg CC and Barclaycard CC) at ~33%, but Barclays have not defaulted...
3). Settle one of the debts in full
4). Pay it pro-rate to all your debts

I think you are *supposed* to offer them all equally, but all is fair in love, money and war, so I would try for option 2 first. Worst case they all turn you down or you increase your offer to settle the two that have defaults...

flossieflipflop

Thanks, I'll try to offer F and F on option 2. I'm doubtful barclaycard will go for it (tried to offer them a F and F last year and they didn't even respond). I'm not even sure why not all of them are defaulted as technically they all are and Lloyds took 3 years to default on the ones they have from the default date. God knows how their minds work! which makes offering F and F's even more of a minefield! Hoping egg might go for it though!

Thanks again