Setlling Debts

DebtClearer

I have a question guys. I'm new to all this but noticed people seemd to be clearing their debts by offering sums of money to companies. How does this affect your credit report?

I have never missed a payment on any debt but I'm half tempted to just ring them up and say "look I'll pay off half my debt if we call it quits:j". I know it isn't this simple, or is it? I don;t really understand the ramifications but presumably it doesn't look great if you have to settle a debt?

nottoolate

a default and a ruined credit file for 6 years are the ramifications

only worth doing if youve already been defaulted so it doesnt matter

camuk81

If you are also still paying all your bills they would less likely accept this as you are still meeting your commitments,

Have you tried completing a statment of affairs as it maybe we can find more money in your budget to help pay more off

DebtClearer

A statement of affairs?

I have managed to get accepted by Virgin and have moved all my debt to them at 0% for 20 months. It is going to be a hard slog to get it down but by God I will do it.

DebtClearer

ahh I see a SOW is a list of incomings and outgoing. Well here goes:

Incoming - 1431
Rent - 285
Bills - 60
Food -100
Fuel - 300
Phone - 36
Entertainment - 100
Saving - 300
Debt - 250

Assets
Car - 3500 (paid off)
Savings - 3600
Debt - Virgin CC - 4700 (0% for 20 months)
- Tesco - 1500 (0% until March next year)

I drive 95 round trip each day and go home at weekends too. This month for example I've already driven 1600 miles. I am trying to save for a house too to keep motivated. I try and get train when I can as it is only £14 return a day but makes travelling even longer. I feel exhausted with work etc but need have moved here to be with my partner. I ended up taking a job a long way from home just so I could stay employed after leaving uni. My debt has been wracked up through stupid spending and living beyond my means.

HappyMJ

DebtClearer wrote: »

ahh I see a SOW is a list of incomings and outgoing. Well here goes:

Incoming - 1431
Rent - 285
Bills - 60
Food -100
Fuel - 300
Phone - 36
Entertainment - 100
Saving - 300
Debt - 250

Assets
Car - 3500 (paid off)
Savings - 3600
Debt - Virgin CC - 4700 (0% for 20 months)
- Tesco - 1500 (0% until March next year)

I drive 95 round trip each day and go home at weekends too. This month for example I've already driven 1600 miles. I am trying to save for a house too to keep motivated. I try and get train when I can as it is only £14 return a day but makes travelling even longer. I feel exhausted with work etc but need have moved here to be with my partner. I ended up taking a job a long way from home just so I could stay employed after leaving uni. My debt has been wracked up through stupid spending and living beyond my means.

You have savings? £3,600? Yes...and have debts. Which are all at 0% which is good. Your net debt is £2,600 which is manageable. You cannot have entertainment of £100 a month and savings of £300 a month as an SOA expense when submitting SOA's to creditors.

edgex

DebtClearer wrote: »

ahh I see a SOW is a list of incomings and outgoing. Well here goes:

Incoming - 1431
Rent - 285
Bills - 60
Food -100
Fuel - 300
Phone - 36
Entertainment - 100
Saving - 300
Debt - 250

Assets
Car - 3500 (paid off)
Savings - 3600
Debt - Virgin CC - 4700 (0% for 20 months)
- Tesco - 1500 (0% until March next year)

what are your current payment amounts on these each month?

TakingControl

If you would pay off the tesco card and parts of the Virgin card with your savings and chuck the monthly £300 savings at the remainder you would be debt free in no time. I know you might earn a low interest on the savings and have a 0% deal on the cards but that way you will be debt free and can save more if you wanted

paulmapp8306

You wont get a Full and Final settlement from ANY creditor if you are meeting your payments. F&Fs are a way of getting a sum up front to close a defaulted debt down - wont happen if there making money off you in interest.

The only way is a SOE - showing you cant affoird the debt (so no savings etc). You debt is then defaulted - so 6 years bad credit history, and they are unlikely to accept a F&F for a minimum of 6 months from that point wither.

You have all your debts on 0% - just pay as much as yopu can off that - your actually in a very good position.

edgex

TakingControl wrote: »

If you would pay off the tesco card and parts of the Virgin card with your savings and chuck the monthly £300 savings at the remainder you would be debt free in no time. I know you might earn a low interest on the savings and have a 0% deal on the cards but that way you will be debt free and can save more if you wanted

I wouldnt do this, as youve then got zero savings as an emergency fund

DebtClearer wrote: »

Saving - 300
Debt - 250

Assets
Car - 3500 (paid off)
Savings - 3600
Debt - Virgin CC - 4700 (0% for 20 months)
- Tesco - 1500 (0% until March next year)

Tesco has 9 months left at 0%
if you transfer £100pm from your regular savings amount onto paying it, youll likely have it paid off before that time

then transfer that regular payment amount to the Virgin CC, so that becomes £350pm
again, that will be paid off before the deal ends

your still then saving £200 per month
when theyre both paid off, you can then save £500pm, & have an extra £50pm as a treat