Advice needed re token payments

zenshi

As i dont have much spare, SC advised me to offer token payments to my creditors which i detailed in a letter. I have just spoke with one of my creditors and although they accept the figure I can spare for my debts they aren't happy with the token payment and want it pro rata.

They have however put my account on hold so I don't incur charges although the intest wasn't mentioned and I stupidly didn't ask!

cc4rhu

I'm not sure what advice you're after. Token payments, usually £1, are offered to all creditors until a more formal plan is put in place. Get everything in writing, don't call them on the phone. Write to them offering what you can, i'd keep paying the £1s until they accept and freeze interest before paying the new payment.

zenshi

I had £20 spare, so I offered £5 token payments?

I guess the advice I'm after is should I stick to my £5 payments or divvy it up? But then what about the others if they are happy with that?! This is one reason I didn't want to go it alone

cc4rhu

£5 was too high. You should have offered £1 then at a later date increased this. I now it sounds silly but saying to them that you've doubled or even tripled your payments to them over a short period of time does work with them. Perhaps they get more commission based on the increased payments and are happier about it.
I would not class £5 as a token payment.
When I first started i owed £48k approx. and was paying it off at £12pm each creditor getting £1 per month as it took 3 or 4 months to sort out the SOA and to get them to agree to freezing interest.

zenshi

Oh Hell!!, don't know what to do now messed up even before I got started!

cc4rhu

You live and learn but it really may be fine already. How many creditors have you contacted? Write to them stating that you are offering your £5s (or less if you haven't contacted them) and attach your SOA. Ask for a balance from them so you know exactly what you've got to pay. There is a standard template to send to them asking to freeze interest on this site somewhere as part of your letter.

zenshi

I have already sent off standard letter with SOA to 4 creditors offering £5 to each
Had one reply this morning giving SO details but no mention wether they will accept £5 or not. Then one rang yesterday which is the one I called today who want pro rata

Should I wait for the next statements? Which are due imminently

zenshi

I will have more to spare in a few months once I have cleared my mortgage arrears. Then I can do it properly pro rata

cc4rhu

The one who sent SO details is probably an acceptance then. That's great. The pro rata one is pushing for extra as they get more commission. Make it clear to them that you won't deal on the phone and that you want it in writing what they have to say. They can put a lot of pressure on you when speaking, making you feel guilty etc. write to them again explaining that these are initial payments until and that you can offer a little more after x months. Now, when you get to that point if the first is happy with £5 stay with that. Offer a bit more to the awkward one (not too much because it is always more difficult to get them to agree a decrease if things turn sour) and then perhaps in 6 months time offer a little more. That shows 2 increases to them in 6 months which can work wonders

The_Boss

zenshi wrote: »

Oh Hell!!, don't know what to do now messed up even before I got started!

You've not messed up though. You're paying off your debts.

harveybobbles

Offer them £1.00. They wont be happy, but they will never refuse it in writing. Never speak to these goons on the phone either and dont let them scare you with their colurful letters.

Never send them an income&expenditure form either as only a Judge can request to see this info.

If they any DCA sends you an I&E to fill in, write back thanking them and tell them you have filled it out and you can now see you only have a few £ spare each month.