Paying off debt and rebuilding credit

MR-B_3

hi everyone.

Im new to the forum and would like to ask a question to anyone who may no the answers, when i was 18 about 10 years ago i got several loans, i took out more than i could afford and am now paying the price unfortunately.

hsbc £5000
sainsburys £5000
vantage credit card £300
capital one credit card £300

At first for the first few years 2006-2008 i could manage repayments and carried on paying the loans then after a few missed payments i got further and further behind,having a low paid job and a family to feed the unsecured debt unfortunately became last priority, over the last year iv managed to get a good job and am looking to pay off the loan companies now (3rd party debt collection agencies). I believe the outstanding balance to be around 8-9000 at the moment so would like to now sort the credit for good.

The questions i have is -

- i am not a home owner and do not have any considerable assets.

- Do i have the option of consolidation? i have no CCJ's am not bankrupt have attachment of earnings or any other agreements.

- Do debt collection agencies accept offers on the debt owed? i owe more than i could pay but if i made a reasonable offer on the outstanding amount would they accept it?

- How long would it take for my credit to improve after the debt is settled? i don't require credit but i don't want it over my head the rest of my life.

any help is greatly appreciated and thanks for your help everyone...MR-B

sourcrates

Hi,
Yes DCA`s do accept lower offers to settle accounts.
Its called "full and final settlement", simply write to the DCA, then, depending on the amount owed, make them an offer to settle the account, the general consensus of opinion is to start at around 30% of the outstanding amount, you can always go upwards, its all a matter of negotiation.
Make sure any offers that are accepted are backed up in writing, and include this sentence in your letters :


"This offer is made on the clear understanding that, if accepted, neither you nor any associate company will take any other action to enforce or pursue this debt in any way whatsoever and that I will be released from any liability."


Template letters available here :
https://www.nationaldebtline.org/EW/sampleletters/sole-letters/Pages/default.aspx


Assuming defaults have already been registered for these debts, it will be 6 years from the date they were registered till they fall off your file.

MR-B_3

That's brilliant thanks for the advice I shall contact them now ;-) ... MR-B