Abbey Loan - help

Wannabesaver_4

HI - we are just about to offer full and final settlements to our creditors at approx 50% of what we owe. Today we phoned up for all balances (we are on a dmp with CCCS but they told us to phone each company and get a balance)

My OH took out a loan with Abbey for £10K and since going on a DMP the amount we have left was calcuated to be at £8k so imagine the shock when today they told him the balance was £15K!!!!!! Thats gone up £5K in 5 months!!!!!! :eek:

Really shocked and hoping they accept my full and finals - anyone got any experience of abbey doing this or offering full and finals and wiping off thier debt.

Another option could be that i could clear all the other debt (apart from this abbey loan) with the cash i have from house sale but it woudl still leave us with the abbey loan remaining in full. Do you think i am better to offer a amount to all or all of it to everyone but Abbey.

Help me please!

Emmzi

Negotiate with them first and see how far they move - start at about 35% and go up from there? Could CCCS help you negotiate, and see if they can help get charges etc removed?

If they won't budge, and others will, get rid of the ones that will take a F&F to get them out of the way.

Congrats on house sale btw - very stressful time!

Wannabesaver_4

Thanks Emmzi - yep incredibly stressful, by the end of it i thought i was going to be carted off to a padded room!

CCCS have recommeded that i use this equation = amount owed x lump sum available divided by amount owed. However this doesnt leave any room for negotitation.

I really need help with this cos i its frightening the life out of me!

Emmzi

Well... you can start by asking them for a written breakdown of the current charges etc.

Any of them unfair charges punitive you can claim back? Then negotiate from there.

I wouldn't pay everyone else off in full and leave Abbey.. it's a more painful process, but I'd negotiate with them all.. and start maybe 10 or 15% down from what their 'pro rata' share is. They'll try and negotiate you up the way, and you need something to play with to get what you really want.

Just like buying a second hand car...

Come here for a rant and a hug any time it gets too much!

Wannabesaver_4

Thanks Emzi - will let you know how i get on!

Emmzi

Template letter here if you need one.

http://www.nationaldebtline.co.uk/england_wales/temp/8116_25821.pdf