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Should I offer full + final settlements?
Geoff2525
Posts: 2 Newbie
Hello there, newbie here!
I've been in debt for as long as I remember owing about £25k at one point. I've been doing DMP's for most of the past six years. Until recently, I had got the debt down to around £9k.
However, I have just had my PPI complaint for an egg loan upheld and expecting compensation of £4500. They are going to pass £1500 to ARC Europe to reduce the debt with themselves. This will leave me with a cheque for £3000 and debts of around £7500.
My situation will therefore be:
Egg loan (now with ARC EUROPE). £4800 owing. Paying £30 per month.
Lloyds TSB Credit card (now with Credit Security). £1200 owing paying £25 per month.
Lloyds TSB overdraft (now with Robinson Way). £1200 owing. Paying £20 per month
Halifax credit card (now with Capquest) £250 owing. Paying £20 per month
I am happy to use the £3000 towards clearing the debts but not sure wheather to clear the smaller debts, distribute amongst the creditors or offer full and final payments? Is it worth trying to clear £7500 debt with £3000. Ive had good relationships with the collection agency's for some time so hope this would be in my favour.
Any help or suggestions would be of a great help.
I've been in debt for as long as I remember owing about £25k at one point. I've been doing DMP's for most of the past six years. Until recently, I had got the debt down to around £9k.
However, I have just had my PPI complaint for an egg loan upheld and expecting compensation of £4500. They are going to pass £1500 to ARC Europe to reduce the debt with themselves. This will leave me with a cheque for £3000 and debts of around £7500.
My situation will therefore be:
Egg loan (now with ARC EUROPE). £4800 owing. Paying £30 per month.
Lloyds TSB Credit card (now with Credit Security). £1200 owing paying £25 per month.
Lloyds TSB overdraft (now with Robinson Way). £1200 owing. Paying £20 per month
Halifax credit card (now with Capquest) £250 owing. Paying £20 per month
I am happy to use the £3000 towards clearing the debts but not sure wheather to clear the smaller debts, distribute amongst the creditors or offer full and final payments? Is it worth trying to clear £7500 debt with £3000. Ive had good relationships with the collection agency's for some time so hope this would be in my favour.
Any help or suggestions would be of a great help.
0
Comments
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A suggestion would be to send a CCA request to each creditor. This probably won't apply to the O/D but it will apply to the loan and cards. Depending on the paperwork they produce you can decide whether you should make an F&F and if so at what level.0
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Sounds a good plan to me. Start lower than you can manage, say 25-30%.0
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