Debt Management Plan newbie

McKneff

My grandson has got himslf into debt, no idea how much but I need to help him with advice. (and possibly financial) The debt is over a few different companies.

He has been to the CAB this morning and they are going to sort a debt management plan up for him.

Obviously I have heard of Full and Final Settlements, when do these become appropriate to offer.

My idea is for him to do this, get it all cleared with financial help from me and then him to pay me back.

I cant help him to pay the full amounts as they are but maybe could manage the Full and Finals.

Any advice please.

Tixy

Hi

Usually creditors are not open to much of a F&F at the start of a DMP.
Is he currently up to date with payments? or does he already have missed payments / defaults etc.

The best F&Fs usually come when someone has been in a DMP for a year or more and either at the point the creditor is just about to sell the debt on, or once its been sold to a 3rd party debt collector.

F&Fs can be offered at any time - but offering them just as CCCS are setting up the DMP could possible jeapodise creditors agreeing to the repayments / agreeing to freeze interest.

If/when offers are made its best to say that the money is coming from a relative only on the condition it repays a debt in full and if not accepted it will be offered to another creditor - that way he doesn't break his DMP terms, and the creditor doesn't turn round and suggest he pays the extra sum to them or into his DMP anyway.

(I hadn't imagined you as someone old enough to have adult grandchildren - funny how we sort of build up ideas as to what people on the forums are like in real life! Perhaps you come across as having a young outlook on life!):)

BlushingRose

My advice would be to see if he can deal with the DMP first, as he needs to learn how to budget and stuff x

McKneff

Excellent advice from you both, I will do the 2nd first and then Tixys when I see how he is coping.

Thanks so much.

McKneff

Tixy wrote: »

Hi

Usually creditors are not open to much of a F&F at the start of a DMP.
Is he currently up to date with payments? or does he already have missed payments / defaults etc.

The best F&Fs usually come when someone has been in a DMP for a year or more and either at the point the creditor is just about to sell the debt on, or once its been sold to a 3rd party debt collector.

F&Fs can be offered at any time - but offering them just as CCCS are setting up the DMP could possible jeapodise creditors agreeing to the repayments / agreeing to freeze interest.

If/when offers are made its best to say that the money is coming from a relative only on the condition it repays a debt in full and if not accepted it will be offered to another creditor - that way he doesn't break his DMP terms, and the creditor doesn't turn round and suggest he pays the extra sum to them or into his DMP anyway.

(I hadn't imagined you as someone old enough to have adult grandchildren - funny how we sort of build up ideas as to what people on the forums are like in real life! Perhaps you come across as having a young outlook on life!):)

Thanks Tixy, a young 62, I tell people I was a child bride:rotfl:
But in life I was 18 when I had the first.
Strange as it may seem, 2 Grandchildren of 22 and 20 and anohter 2 of a completely 'next generation' of 4 and 2. Same Dad. lol.

macman

If he expects you to help him clear the debt, then surely the first thing he has to do is be honest (with himself and you) about how much the debt is?
He appears unwilling to divulge this, or have I misunderstood your post?

McKneff

macman wrote: »

If he expects you to help him clear the debt, then surely the first thing he has to do is be honest (with himself and you) about how much the debt is?
He appears unwilling to divulge this, or have I misunderstood your post?

He knows nothing of this at the moment and wont for some time to come. I'm waiting patiently till I know for sure he has got his head out of the sand. So, no, not unwilling, I told him it was his business and I really didnt want to know how much debt he had.

He went to CAB this morning off his own back, I think he just wants to get his finances sorted so he can move on. Unfortunately, he has just moved back to the area and Landscape gardener jobs are few and far between so he is looking for other jobs.

I think he would be horrified at the moment if I even hinted at it. He stayed with us for a few days over the weekend and we have a good relationship. We talked a lot as to where he is going at present and it was (in his words) precisley nowhere if he doesnt do something about it. I was extremely touched by it, but like I say, I will wait and see what happens first.