first post ever help on dilemma re debt management

jusjus

Please can anyone help me. I am on a debt management plan and have £5k approximately to pay. I hopefully will be in a position to clear this, but this is the dilemma, do I let them negotiate on my behalf and potentially get up to 70% reduction which reduces debt to £1500 what are the consequences of this please does anyone know and can explain in laymans language. Many thanks

longtermplanner

hi,

you are on the DRO and IVA board which isn't ideal for your question. Perhaps someone else knows how to move your post?

But to answer your Q, who are 'they' - your DMP company? Are they offering to negotiate on your behalf? If you google for Full & Final Settlement you should be able to find sample letters which you could write to your creditors yourself which would leave you more in control perhaps?

If your creditors accept, then the effect is that your debts are wiped out but there is a marker on your credit file that the debts were no repaid in full. Whether you care about this depends on your situation.

If you have just inherited £100,000, then you might not really mind if you have to pay all of the 5k to settle the debts and you might be more interested in having a better credit record (better, not best - the 'marks' from your DMP are still going to be around for a while). But if your sister is lending you the 5k, then common sense says settle for as little as possible so you don' need to borrow that all from her.

fatbelly

OP - you've posted on another thread as if you're in an IVA but here you say you are in a debt management plan. If the latter is true, you should post on the debt free wannabe board and address the questions in the post above