PPI PAYOUT; now I Want to make an F&F Offer?

Gothicbetty

Hello All, I'm a forum virgin! :j

I was wondering what on earth to do so in our situation and as I've been hovering around on here for months getting lots of lovely information (thank you all MWAH) we have won a PPI comp payout of hut hum....total of 14.5K. Well we have nearly 19k of debt due to the usual stuff, my partner lost his job didn't get the mort' ins' to payout in time so he put the mort' on the CC :eek: then I lost my job when I had our little girl as I couldn't return to work straight away as I had to have major surgery afterwards (couldn't walk for 5 months) hay ho my other half got out a 10K consolidation loan :eek: to pay the debts, his new job (Royal Mail) then put him to part time and we're now in the poo basically!

We are on a CCCS DMP that started in July and then THANKS TO THIS WEBSITE I made a claim for 21 years of PPI on 2 cards and the mortgage PPI which was pretty easy but took time and now I've tried to write to them to pay 55% of the debt back immediately using this money as our situation is going from bad to worse due to everything going up and up and I've had no reply at all. Just one try so far but do you think it's worth pursuing it? I thought I'd chance our arm at the 55% and expected to increase it anyway as most of the card debt now over the period we've had it is interest and PPI (very galling!!!)

What do you guys think? And what would you do? Even though we're on the DMP we're still getting the usual statements and threats... Halifax is the worst! :mad:

I'd appreciate any input from your good selves it's been a bit of a nightmare, my partner had a breakdown after our baby was born (I was resuscitated in front of him) we have no family support and no prospect of ever having more children. we've been together 10 years and are at breaking point to be honest.

Thanks in advance
Tania

Gothicbetty

Hello....is there anyone out there!

Vikipollard

Hi GB, and welcome to the forum.

Afraid I can't offer any advice on your particular question, but no doubt someone will be along soon who can.

It's the weekend so it can be a little quiet, so that's likely why you haven't had a reply yet. Hang in there and you'll get some advice

fatbelly

Hi

Hopefully the debt management plan is affordable, and allows you to live comfortably. They do take a little time to settle down, and you are only 4 months into yours. The major creditors (like Halifax) do like to work through their standard letters and pass your account through different departments.

It may be a bit early to try full & finals. So for the meantime keep your lump sum safe and obviously not in an account that is in any way connected to your creditors.

Having a bit of cash and an affordable dmp should not be too bad a place to be.

When you try making offers again (National debtline standard letter, probably next Spring) start lower - say 25%. We have seen a lot of settlements in the 30-40% range.

Gothicbetty

Thanks guys

Thank you so much for your advice FB, I have jumped the gun a bit I think but I've taken over all the financial stuff since my other half had his meltdown as he just buried his head about it and I've tried to paste over some of the cracks from his ignoring them, kind of PR on our part I guess.

We got our payout and then spoke to the National Debtline or CCCS can't remember which now and they said that we had to pay the whole lot using the equation as they now know how much money we have (obviously as they gave us it! lol) We needed to get another car as our old one blew up and really wanted a few days away as we haven't had a break in 10 years with all the crap that keeps happening to us and one thing and another and the man said we could justify a car because of getting him to work but anything else would be out of order and could damage our reputation with them!? OUR REPUTATION, they gave him the loan in 5 minutes of him going in there to say he was having trouble paying and that was when I was 2 weeks post op/baby (hysterectomy, saga!) he was non-compusmentis at the time to be sure and already hugely in debt and they give him 10K more!!! :mad:

Anyway....we want to use all of this money to pay it off and just get it out of the way really. We've got enough to deal with at the moment without this really. I'm just worried that they know how much money we have so they could tighten the screws on us even more if they wanted to.

Thanks for your help any more nuggets would be greatly appreciated!
Tania

fatbelly

I can't add anything much to my previous post except to emphasise that this is all about negtiation and what they accept, they accept.

And they won't accept your first offer...

Mort

Congratulations on getting PPI compensation. Are you aware that there might be a tax liability on the interest portion, if there was some, of the compensation? There are some posts on MSE about this and it was mentioned on BBC R4 Moneybox recently as well, apparently not all institutions are collecting the tax at source.

We had a small lump sum come our way earlier this year which was about 20% of our debt at the time, we used some of the lump to pay for a holiday and just put the rest into our DMP. May not have been the "correct" thing to do but it worked for us. We were also advised that if we settled a debt with a shortfall payment this would be registered on our credit rating.

Good luck.
PS. I am not by any means an expert, you should research your tax position and what I was told about credit ratings for yourself.

Gothicbetty

BUMP Can anyone else help at all?:j