Pot of Money-How to use it the best way?

fabianne

Hi
I have a pot of money on it's way and although I would LOVE to book a holiday with it....BUT my sense of responsibility is strong and want to use it effectively as I can to ease my worries a little.I also want to retain a small sum for an emergency buffer.

I intend to pay off smaller debts completely with it and then focus on the cc and bank balances.It will in no way pay these off though.
Is it best to divide the remaining money up and pay each a small chunk off straight away? Even those I have negotiated a token payment with for a 6 month period?
Or do I keep the money in a savings account and ask them for monthly repayment figures and do it this way? I am worried that I may not be able to keep up the payments once the money has been used up though and get myself more in a mess.

I have default notices from the bank and cc companies already and they have placed it with DCA's on 2 accounts.
What is the best way to go about it?
Any advice warmly welcomed.
Thanks
Fabs x

lynzpower

Would you be able to offer F&F settlements tho for some of the debts?

Itrs difficult to really know, as I cant remember what debts you have and who with & APRS

Crown

Hi fabianne,

I totally agree with making an offer of Full and Final settlement if the circumstances are right. Can you post up some more details of what type of debts you have and roughly how much you should be receiving and im suree we can offer some advice.

Have a look at on nationaldebtline.co.uk for info on the settlement offer process. I also read on another website/forum that one guy had an offer accepted of 30p in the pound but this doesnt seem to be the norm.

I think if you just pay the amount of the debt each month from your "pot" then you are missing an opputunity.

Storm

I would recommend asking for F&F settlement figures on your larger debts, as then it might get these cleared completely.

Otherwise, if you pay off the smaller ones, I would make lump payments to the bigger ones explaining that it's a one-off payment from money received - you can always then increase your monthly payments as you won't have the smaller ones to service too.

fabianne

Ok- although the amounts involved that I could offer is less than 10% of some of the balances.I doubt if they would accept that.
I will post the figures up later.
*Was hoping someone would say "No Fabs-you MUST take a holiday you DESERVE it*
(joke)
x

Storm

Well, perhaps pay off the smaller ones, then use what's left for a holiday? We do all need a break now and then (as long as it's a cheap MSE one ) but without knowing the figures it's hard to advise.

One thing though - it would probably be better to settle the debts with the defaults on them if possible as they'll show as settled on your credit report.

fabianne

Hi all and thanks for the advice
I called one creditor today and asked about settlement figures.I am working out my pennies tonight to see how far it will stretch over my creditors.

fatbelly

I think it might be better to put a figure to them. I notice from your other thread that your credit cards have defaulted you. They often sell the debt on for around 30% of its value. Perhaps start by offering 25% and see who bites first. There's a factsheet/standard letter on the National Debtline site