F&F conundrum

Ben75

I have £25k worth of debt, all defaulted in 2011.

I have successfully negotiated a F&F settlement of £5k for £12k of the debt. This would leave me with £2.5k spare in my savings account (got the cash from an inheritance).

However, there is now an outside chance there may be job cuts where I work, and as I've been there less than two years I understand I am a bit more vulnerable than others.

Would it prejudice negotiating future offers if I didn't settle this time? Are the creditors more likely to take out a CCJ? Is my best bet to seize the opportunity to reduce debt?

*scratches head*

daniel86_2

Personally, I would put the 7.5K in a high interest savings account or current account with high interest 3-6% available at the moment and save as long as you can. Especially if there is a chance that you may lose your job or hours cut as not paying the debts off will not pose you any risk in the short term as they will probably no longer be gaining interest and if you did lose your job payments can easily be adjusted.


How much are you paying your creditors each month would you reduce your out goings significantly by settling them.

It is unlikely though not guaranteed than a creditor will suddenly go for a CCJ after 5 years especially if you are making payments and there is no way to know if this will affect future negotiation though I would have thought not. What did you say to the creditors about the money you have did you say you had money or did you say you might be getting money.

sourcrates

Ben75 wrote: »

I have £25k worth of debt, all defaulted in 2011.

I have successfully negotiated a F&F settlement of £5k for £12k of the debt. This would leave me with £2.5k spare in my savings account (got the cash from an inheritance).

However, there is now an outside chance there may be job cuts where I work, and as I've been there less than two years I understand I am a bit more vulnerable than others.

Would it prejudice negotiating future offers if I didn't settle this time? Are the creditors more likely to take out a CCJ? Is my best bet to seize the opportunity to reduce debt?

*scratches head*

Less than 10% of defaulted accounts ever get to court.

You are just an account number on a spreadsheet to your creditors, debts get sold on usually if creditors are unhappy, if your making some kind of Payment to the remaining balance, it's unlikely further action will be taken.

There's nothing to stop you proposing further settlements in the future, when the job prospects have improved.