Settlement offers on DMP

Lara882

Hi all,

I have been on a DMP through Step Change for 5 years, it started on about £18,000, now owing £11,572. I currently pay £154 per month.

I may be able to borrow some money from family so am thinking about full and final settlement offers. The creditors and amounts I owe are as follows:

Moorgate - £504 DMP agreement showing agreement on file, no default
Halifax - £6017 Default date 11/2012
Lloyds £2997 Default date 10.2011
Barclaycard £2054 default date 09/2010

Total £11,572

Does anyone have experience of offers with any of these creditors?

I know they answer is probably no but is there any way to get defaults removed?

Would any of the creditors be likely to accept an offer yet mark it as full and final and 'settled' on my credit file? I have read some things about negotiating this as part of the offer but do many really do this for part payment?

Last but not least, what sort of % of the debt do people offer? I may only be able to get £3,500 altogether so offers would be as follows (not exact to the % or £ but close enough for now):

Halifax have 52% of debt owed - £1820
Lloyds 26% of debt - £910
Barclays 18% of debt - £630
Moorgate 4% of debt - £140

I really cant see any of them accepting these offers as they seem so low, I think it works out as low as 30% of the total debt owed to each creditor. I really dont think I can get any more money but am desperate to get out of this debt. I have never missed a payment on my DMP but at the rate I'm going I've got over 6 years left on my DMP ;(

Loads of questions I know, I would appreciate any information,

Thanks

Lara882

anyone??? all advice greatly appreciated x

SRT81

I'm just in the process of offering F&F settlements to creditors.

The only one I share with you is Barclaycard. I wrote and offered 30%, which they rejected. But they didn't make a counter-offer, just said that they were willing to discuss the matter if I could call and make an improved offer. I think they can be a bit of a pain!

If you can get any lump sums, I'd say just make the offers you can and go from there.

Look at it this way, even if only one or two accept an offer and you get it settled, then the money you're paying on your DMP will be spread between your other creditors, reducing the time to clear the rest of the debts.

In terms of getting the defaults cleared off, I don't know very much about that, perhaps someone else will chime in and offer some advice!

So far I've had four offers accepted, and two have confirmed in writing that it's for full and final settlement of the account. I've written to the other two explaining that I will pay what they've accepted once they've confirmed that it's for full and final settlement, that they or their client won't chase and that the account will be marked as settled on my credit files, etc.

Just got to keep on at them until they accept your terms!