Debt Settlement

russ01282

Hello, I'm new on here.

I'm looking for some advice on settling debts.

I have around £25k in debts to 15 creditors for loans, credit cards, pay day loans etc. All are in defaults. 2 have CCJ's.

All of my priority debts are already cleared.

I have fortunately come in to some money and have £15k which I can use to pay the debts. I ideally would like to negotiate a reduced settlement with my creditors and would appreciate advice on how best to do this?

I have opneed an account with Noodle and I also have a few debts for pay day loans which do not appear on my credit file. Should I treat these debt differently?

I look forward ot hearing your advice.

sourcrates

I always advise people about to do this, to do CCA requests to all relevant lenders first, as a matter of course.
Doing this will determine how much you offer each creditor, as if there are any issues with any accounts, such as no paperwork etc, then they will settle for much less than they normally would.

Template letter here :

uote:
(Your home address)
Date:
To:

Dear Sir/Madam

Account/Ref No:

With reference to the above agreement, I/we would be grateful if you would send me/us a copy of this credit agreement and a full breakdown of the account including any interest or charges applied.

I/we understand that under the Consumer Credit Act 1974 [sections 77-79], I am/we are entitled to receive a copy of any credit agreement and a statement of account on request.

I/we enclose a payment of £1 which represents the fee payable under the Consumer Credit Act 1974.

I/we understand a copy of any credit agreement along with a statement of account should be supplied within 12 working days.

I/we understand that under the Consumer Credit Act 1974 creditors are unable to enforce an agreement if they fail to comply with the request for a copy of the agreement and statement of account under these sections of the Act.

I/we look forward to hearing from you.

Yours faithfully



Your name.
Print you name rather than use your normal signature, since some DCA's have been known to scan it so they can mock up a fake CCA.

For the same reason, the statutory fee of £1 should be a postal order.

When you have responses to your requests, then you can determine how much to offer each creditor.

immoral_angeluk

Informally - write to your creditors and offer them an amount (less that what you can pay) and negotiate from there. However you need to work out the amounts pro rata so it's fair to all your creditors.

Formally - contact someone like payplan, grant thornton etc about a full and final IVA. There will be costs but it will be a fully legally binding and formal arrangement.

russ01282

Thanks for your help, I will start with the CCA.

So once I have the responses I should write to each with a pro rata offer unless they have issues such as no paperwork. If they have no paperwork and can't enforce the debt should I offer them anything at all?

Also is it not better for me to do this myself that use Payplan or Grant Thornton?
Thank you.

sourcrates

russ01282 wrote: »

Thanks for your help, I will start with the CCA.

So once I have the responses I should write to each with a pro rata offer unless they have issues such as no paperwork. If they have no paperwork and can't enforce the debt should I offer them anything at all?

Also is it not better for me to do this myself that use Payplan or Grant Thornton?
Thank you.

If no paperwork, you could offer a really low amount just to get rid of the debt and stop any future letter tennis with various DCA's, otherwise they tend to keep on trying to get money out of you.

Yes do it yourself, I think the other poster was referring to use of a 3 rd party should you wish to go down a more formal route and agree a full and final lump sum IVA.

I don't agree with pro rata offers so you can "be fair to all creditors", I think you should go all out to get the best discount you can from each one, and stuff been fair, they would shaft you as soon as look at you, I see no reason why you should not take the same attitude.

russ01282

What about C c j debt should it be treated differently? Also what about debt not on my credit file.

happy_bunny_2

CCJs may settle for less, may not. They have other means to get their money if you don't pay.

How much are you paying on the CCJ ones per month? Whats the total?

russ01282

i have two ccj's one is £3000 and one is £3700. i'm not paying anything on either.

Has any one any suggestion if the debt is not showing on my credit file.

sourcrates

russ01282 wrote: »

i have two ccj's one is £3000 and one is £3700. i'm not paying anything on either.

Has any one any suggestion if the debt is not showing on my credit file.

How old are the CCJ's ?

They will show on your file, under the public information" section.

russ01282

Ccj are about a year old.

The debts not showing on my credit file are from pay day loans, not these ccj's.

dobbollah

sorry to hijack, what if the creditor doesnt reply to the CCA request whats the next step...

im sure they won't just give it up on the first letter