Urgent Help Needed

sourcrates

MrsTinks wrote: »

Whilst nothing is ever impossible then chances of creditors settling a debt that hasn't been defaulted and in arrears for a while is low.
In partially settling them or delaying payments you are in effect putting the accounts into default anyway.

I would say next to impossible, the contract has to be broken before anything but the full balance will be accepted.

The OP seems to be confusing the Limitations act with paying down a DMP, If your accounts default, they stay that way for 6 years, the defaults then vanish, makes no difference if your still paying the debts off or not.

As I said before, if your situation is going to last a while, get a DRO and have done with it, it's a fantastic, and very much underused, piece of legislation.

MrsTinks

I don't think anything is ever impossible unless you don't try. However I will agree it is so unlikely in this case that it's close run thing.

I think some creditors may consider a reduced settlement in certain circumstances, but they would have to be compelling life changing reasons. Like permanent changes to your likelihood of being able to repay this debt ever. I'm not seeing indication of that but then again, someone at the creditors may hit the wrong key and find it gets approved. Who knows.

I 100% agree that it sounds like the OP is misunderstanding the impact of his actions in reducing payments, pausing payments or offering reduced settlements.

Right now you really need to forget about the reduced settlements as a realistic option, and certainly one that won't affect your credit for the next 6 years. As Sourcrates says, if you're going to mess up your file anyway, why use relatives money to settle some of it? That won't change the impact on your file, only your relationship with your relatives.

If you have placed the accounts on hold and are now missing payments you have already done damage to your file in fairness. I'm guessing though that it wasn't awesome to start with if you have payday loans?

Think this through properly and consider the DRO as advised above.

Baileydog421

My credit file wasn't amazing to begin with, and I believe one of my creditors has just defaulted my account.
I completely understand that my credit file will be shot to pieces for years to come, I just want the debts gone. All of my credit account have had no payments whatsoever made for atleast 6 months, and due to my current lack of employment I'm hoping to pay a smaller amount to settle the accounts.
I have contacted a few of the creditors so far, 2 of them have offered me a settlement which is 50% of the outstanding balance, one offered me 55%.
I plan to write to each company over the next few days in the hope that I can negotiate to around 40% and begin to get these settled. I've spent a lot of time worrying about how this was mounting up, and regardless of credit file damage, I just want it all gone ASAP, I don't really want to postpone this longer than I have to.