Debt settlement agreement - in DMP

Brownowl2013

Ok so here goes (big sigh) since arranging our DMP a few years ago I have tried as much as possible to not have sleepless nights over our situation. We once owned a house, made the decision to sell in order to privately rent from a family member with a low monthly rent in order to pay off some debts. I came that we weren't getting anywhere and were left with a debt of nearly £30k from NRAM which was an unsecured loan alongside our mortgage.

We now have the following;
NRAM £24000
Moorgate loan £3200
Partners Moorgate loan £3500
Next Directory £1300

We also have loans with family members (none of which we have borrowed since taking out DMP).

We have young children and currently rent but we are desperate to buy our own house again. We have learnt from our mistakes and have been doing all we can to clear these debts but they just aren't going away and are reducing so slowly. We want to try and arrange an agreed lower settlement figure that we can try and pay off over a shorter amount of time. We have a family member willing to help us increase our monthly payments if the companies would agree to this kind of repayment.

We also feel it important that should the companies agree that if throughout the duration of that repayment should be be in a position that we can pay full and final.

We are aware that we can negotiate a full and final settlement which we did with a card we settled but they wanted this as a lump sum and not monthly.

Can anyone help advise whether something like this exists and how we go about it?

Many thanks in advance, anything we can do to get rid of this mess and start a road to our own house would be amazing. Here's hoping.......

Thrugelmir

Full and final settlement will require a one off lump sum payment there's no avoiding this. There's little possibility of the creditor agreeing to a lower settlement figure on any other terms. Simply not in their interests to do so. Perhaps use your family's money to make a F&F settlement once the amount that is required is low enough to meet. Rather than increase your monthly payments now.

Brownowl2013

Thanks for your reply, any idea roughly what percentage companies take for full and final? We have been in dmp for about 3 years now.

glentoran99

ive recently settled a few and they ranged from 25% to 85%

Brownowl2013

Thanks, the most worrying is NRAM for £24000, have no idea what they may accept. Can't seem to find anyone who has posted a successful f&f with them?!

glentoran99

Brownowl2013 wrote: »

Thanks, the most worrying is NRAM for £24000, have no idea what they may accept. Can't seem to find anyone who has posted a successful f&f with them?!

start low and take it from there, they can only say no

Brownowl2013

Thanks for your help, did you write to them? What should I say? Sorry for all the questions ��

glentoran99

Lots of templates on the national debtline website, thats what i used, I phoned a couple and wrote to them, make sure if you do phone though that anything agreed is in writing,

Meatloaf1981

Just remember that when you offer an F&F, you make it very clear that you only have finite funds available and that you have other creditors that you will be looking to make an equally fair offer to as a proportion of the funds available to you, that way they can't be cheeky and ask you to up your repayments. I would also mention that the source of the money is not coming from you and is not available to you for ongoing monthly repayments.

Deep_In_Debt

Meatloaf1981 wrote: »

Just remember that when you offer an F&F, you make it very clear that you only have finite funds available and that you have other creditors that you will be looking to make an equally fair offer to as a proportion of the funds available to you, that way they can't be cheeky and ask you to up your repayments. I would also mention that the source of the money is not coming from you and is not available to you for ongoing monthly repayments.

Also don't let them know how much you have available to offer - just offer them a certain percentage and work from there. Make sure that neither they or any associate or 3rd party will chase you for the remainder of the debt as they could be cheeky and try and sell on the remainder and you could find yourself being chased for the remainder a few years down the line.

As another poster said, National Debtline website has a good template letter you can use for this.

Thrugelmir

Brownowl2013 wrote: »

Thanks, the most worrying is NRAM for £24000, have no idea what they may accept. Can't seem to find anyone who has posted a successful f&f with them?!

How much are you currently paying them a month?