Paying off debt with PPI

daveyboy1979

Hello

My partner and I recently received £6000 from HSBC as repayment for PPI. We currently owe them £20,000 from a previous loan. They paid the £6,000 into my current account and not off the loan. In addition to the HSBC debt we also have several small balances outstanding with companies such as Very, Orange, Egg etc.

We have been using a debt management company called Fairline for the last 4 years or so paying back £900 a month. We are obviously very keen to stop this payment and address the debt without them and their silly charges.

My question is what is the best way to approach the companies we owe money to? We added up the money we owe to the other smaller companies and it amounts to around £5,400. We have £6,000 to pay them so on the face of it the problem is solved. We would like to pay them as little as possible in terms of a settlement figure.

Any tips?

Thank you for your time.

moohound

There are templates for standard letters for full and final payments to creditors on the forum. Smarter people than me know where they are.

Some forum members have managed to get F and Fs as low as 20 percent. But around 40 to 60 seems average from what I have read. I think it depends on how old the debt is and if it has been sold on or not.

I can't help with why the bank that refunded the ppi didn't take it off the balance of the loan.

Are you thinking of self managing a DMP or going with one of the free providers like payplan or CCCs? The pay for debt management needs binning off ASAP.

Well done on getting the ppi back and I'm pleased it will bring your DFD nearer.

daveyboy1979

Thanks Moohound

I would be interested in the letters you mentioned. I would like to self manage as ultimately the plan is to just have my HSBC loan left and to know exactly where I stand without Fairline taking £150 of my £900 payments every month.

Thanks

Takingcontrol_2

£150??? WOW! Daylight robbery these companies! Definitely get rid of them I think if I were in your situation, I would pay off all the smaller debts to just leave you with the HSBC loan. Well done on your successful PPI claim too