paying off debt with house sale

cdf_2

Hi , i've had valuable help on this forum before and would like some more advice please .I'm currently on a dmp with cccs and paying 3 creditors total debt around £24000 .I'm going to be selling my house soon and have accepted an offer but once sold i will only have about £21500-£22000 spare cash to pay off my debts .Would this amount be enough for my creditors to accept a final settlement and thus for me to be debt free .It only works out that each creditor will be about £750 - £1000 short each .Has anyone done this before and I must add that I do need to pay off my debts instead of keeping the dmp running and am also still getting hassle from one of my creditors , any advice would be appreciated ,thanks .

Kevicho

I think its a good idea to try, however i must point out that creditors accepting "reduced payments" usually put some adverse information on regarding these kinds of settlements, may be worth seeing if this will be the case.

It may be worth working out which debts to pay in full and then pay off the cheapest debt over the comingmonths, this can be done by using the spare cash from payments that would normally go to the other debts, to pay these last 2k of debts.

A clean credit record is always beneficial.

CLAPTON

I would suggest you get copies of your credit files and see what they say.. they are probably already trashed with defaults.

I think it is very likely that they will accept a offer but make sure everything is done in writing.

I would suggest you use the nationaldebtline proforma letters see here :

http://www.nationaldebtline.co.uk/england_wales/temp/4187_70801.pdf

also I would suggest to make an offer that allows you to keep a little money back (to get a flat (deposit etc)) so you can avoid any further debt especially as you wouldn't be able to get any credit anyway. I would suggest you offer about 60% to allow space for negotiation.