Settlement offer with Payplan ..

another_casualty

Ok .
I've received great advice from others in my main thread, as well as here.
It seems best to pay the the creditors directly .
Has anyone got the links to the prepared templates , I could use to send to the creditors direct?
Thanks

sourcrates

another_casualty wrote: »

Ok .
I've received great advice from others in my main thread, as well as here.
It seems best to pay the the creditors directly .
Has anyone got the links to the prepared templates , I could use to send to the creditors direct?
Thanks

You don't have to do any of what payplan want you to do, I think you have now realised that.

Honestly why would you allow a 3rd party to negotiate this for you ?

Template letter here :

https://www.nationaldebtline.org/EW/sampleletters/Pages/Full-and-final-settlement-offers-%28sole-name%29.aspx

another_casualty

sourcrates wrote: »

You don't have to do any of what payplan want you to do, I think you have now realised that.

Honestly why would you allow a 3rd party to negotiate this for you ?

Template letter here :

https://www.nationaldebtline.org/EW/sampleletters/Pages/Full-and-final-settlement-offers-%28sole-name%29.aspx

Thanks sourcrates . Really much appreciated .

GibbsRule_No3

How to work out offers of payment in full and final settlement

You may have a lump sum that you need to divide up amongst several creditors. The usual way of doing this is to make "pro-rata" offers. This means that each creditor gets a fair share of the money available. The creditor you owe the most to will get the biggest share of the money and the creditor you owe the least to will get the smallest share.
Find out the exact outstanding balance you owe to each creditor
Use the formula to work out how much to offer each creditor
Use the following example on page 2 to help you.
FORMULA
LUMP SUM AVAILABLE x EACH DEBT
÷THE TOTAL AMOUNT YOU OWE TO YOUR CREDITORS
= OFFER TO THE CREDITOR
EXAMPLE
You may have £10,000 owing to 4 creditors. You can raise a lump sum of £4,000.
You owe:
£2,300 to mastercard
£ 1,200 to a catalogue company
£ 4,500 to a loan company
£ 2,000 to the bank.
Use the formula:-
£4,000 (lump sum available) x £2,300 (debt to mastercard)
÷£10,000 (the total amount you owe to creditors)
= £920 (offer to mastercard)
Your offer to mastercard is £920. You then do the same calculation for each creditor, using each individual debt in the calculation.


See above that I found useful when I did my own F&F when I was with Payplan. I did it on my own and then informed Payplan which creditors did accept. Barclaycard did not, so rather than let Payplan use the full monthly payment after the ones that did drop off the DMP I told them I only wanted the normal monthly payment going to Barclaycard until the DMP with then finished.

another_casualty

Thanks Gibbs

another_casualty

Thanks again , here's where I stand :

Barclays £978.97
Natwest( mint card)£5,851.82
Pra group(Barclays )£6,718.05
Santander cards £932.48
Santander £9,084.67
As my mortgage ( which I've paid ) , is with Santander and the fact that I don't want to appear fraudulent , I've decided to do this :

Make larger offers to each creditor , explaining that I've got m G and quit job & am finding it hard to find a cheaper place to live.
There is a slight chance they may accept offers as it wiould be available as a lump sum straight away .
What do you think ?
I don't want to go down the means test route with Payplan , so this seems the best solution .
full and final settlement
Thanks
Edited to say that, i will write template letter, as input cannot be saved on iPad .
I don't have printer , and my computer is in storage .

Also , Payplan's website has been given a makeover . There's even a page there where you can contact creditors .
Thanks

enthusiasticsaver

All they can do is say no AC so certainly worth a go. If you don't lie about your situation then you aren't being fraudulent. As we have said many times before you need to work out a proper monthly budget for purchasing your home. I would work out one years full expenses to give you time to find a job, calculate your rent for 6-9 months, storage and moving expenses and don't let your capital go below that amount. If you find a cheaper property or find a job next spring that is a bonus.

Do as Gibbs suggested and work out how much to offer each creditor pro rata. Post the figures here. As for means testing that works in your favour as you have no income. You have no permanent home yet and need to allow yourself a buffer. That is sensible and most creditors will understand that. In view of your debt problems,lack of income and need to buy a home still I strongly suggest budgeting going forward rather than just spending regardless from your capital. Draw out weekly cash and don't spend over your allowance.

GibbsRule_No3

AC you say you don't mind paying upto £15,000. So perhaps try doing the pro-rata with the £11,500, make those offers, telling everyone what you are doing in the letter. Then if some do not accept but make a counter offer, saying what they would be willing to accept use the remainder of the £15,000 thus £3,500 to play with. Just hope some will accept the first offer. Barclaycard told me they would not accept anything, M&S said they would accept such and such so I used the Barclaycard money to pay them. While we all say we don't want credit ever again doing F&F affects other things as well. I now have a very healthy savings account and my current account usually has over £1,500 in it at the end of the month but CoOp won't upgrade my basic account and I have been with them for more than six years, so they can see how I now manage money. I wanted a contactless card, so that was the reason for wanting to upgrade the basic account, does not matter now as they do accept the basic account on the iPhone, Apple Pay, daft or what? Santander refused my application (when it was worth having the 123 account) so the DMP and F&F will creep into your life for a few years yet.

another_casualty

Thanks again .
I will probably send offers( handwritten ) today. Tomorrow at the latest.
I've just had an offer for Vodafone broadband , and they are now aware of my new rental address as from tomorrow.
When I send letters to creditors , I assume it's best to use the rental address.
Or is it best use the address that is still on their records?

enthusiasticsaver

Use the rental address AC. You don't live in Twickenham any more