Full and Final Offers

City1

Hi,
We are in the process of contacting our creditors with regards monthly payments.

However my wife has come into about 4000, I was wondering if anyone had experience of f and f offers. We have cc debt and next/overdraft and Ikea.

All advice appreciated.

Cheers

CLAPTON

how much are your debts?

have you defaulted on the debts?

City1

CLAPTON wrote: »

how much are your debts?

have you defaulted on the debts?

Hi,


In total our debts are at around £70000, which includes approx. 14 cards on varying amount, ikea kitchen of £3500, next £4000 and two overdrafts of £2000 each (wife and I). There is also a flexi loan of £4500 (hsbc). To clarify that all comes to 70k.


In what sense do you mean defaulted on the debts, we have missed payments and received letters, we have sent letter to creditor about 1 week ago (National Debt Line - 30 days template) asking for breathing space. Some have replied straight away some haven't replied as yet.


Does that help?

Tixy

They usually aren't willing to accept much of a reduction on debts that haven't defaulted (entered a default notice on credit file) and frozen interest.

If you have only just offered reduced payments then its probably unlikely they'll yet be willing to accept a reduced amount at all, and if so its likely to be a very small reduction.

The best F&F offers are usually obtained a few year after the default/interest frozen and either just before or after they have been sold to debt collectors.

harveybobbles

70k of debt? Does this include a morgage?

Tixy

If you might be considering some form of insolvency for your debts then be careful about paying off some in preference to the others.

Is the letter you have sent the one where you ask them to give you a month whilst you seek some debt advice? if so I definitely wouldn't pay off anything with that £4k or make any F&F offers until you have done so.

City1

harveybobbles wrote: »

70k of debt? Does this include a morgage?

This doesn't include the mortgage.

moohound

Mine had been defaulted by about 6-8 months, and as Tixy said, were just before and just after being sold to DCAs.

I sent the letters myself, and my 9 creditors took between 30 and 90 percent.

The overdrafts were a real pain during my (brief) DMP.

Good luck with getting debt free.

moohound

I would hang on to the money until your position becomes clearer.

City1

Tixy wrote: »

If you might be considering some form of insolvency for your debts then be careful about paying off some in preference to the others.

Is the letter you have sent the one where you ask them to give you a month whilst you seek some debt advice? if so I definitely wouldn't pay off anything with that £4k or make any F&F offers until you have done so.

Insolvency, in what sense? We were looking to do a DMP with stepchange, but after a lot of thought we have decided to do it ourselves. The letter is the one sent out asking for advice, yes.


Would we be as well saving that £4000, and saving the odd £'s and then "say" in about 3 years start to send F and F letters out.


Also on a 'self managed Dmp', would it be acceptable to pay in a snowball method paying the smaller debt quicker assuming interest is frozen?


Cheers

City1

moohound wrote: »

I would hang on to the money until your position becomes clearer.

Moohound,


Can I ask? How did you manage to get debt free so quickly?


Regards