Repay debt by making offer

jeanie49

I am 50 years old in full time employment and have £60k worth of debt and have set up payment plans with 12 creditors ranging from £1 to £40 per month. A friend has offered £10k to repay them as I am so stressed. Is there any point dividing this between them pro rata and offering this as settlement?
Im going to be repaying for ever!!

McKneff

You could try, are you in default with any of them.

jeanie49

No I have kept up the agreed payment plans which have been in place for 6 months. The debts range from store cards of £400 to bank loans for £10,000. Some are in hands of debt collection agencies.

FireWyrm

Often, if there is no prospect of ever recovering the money in full, many lenders will simply take the offer. I suggest a frank round robin letter and simply divide the £10K between them equally. Be sure to point out in your letter that you are suffering from mental illness (stress) and that this is the last opportunity they will have to recover any amount of significance, after this point, you will only pay token amounts until pensionable age.

Be sure also to mention that this is FULL AND FINAL and that you will not be contacted any further by DCAs, effectively a write off. I assume you dont own any other assets (like a house) and if not and you dont mind your credit rating being up the wahzoo for the forseeable future, I might be inclinded to simply walk away.