Newbie here..Advice on offering settlements to them that u owe money to

fairy23

Hi all,

I owe in the region of 20k (gulp). A while ago now, i let them go to default so the interest would stop and i pay each of them the bog standard £1 a month as i am at university at the moment.

Now, rumour has it, that if i manage to save up at least a quarter of what i owe, they would most likely accept the offer, and wipe the rest off. So, in theory, 20k owed, save 5k and pay them off = debt free!

Does anyone know if this is correct? has anyone does this before?

any advice would be greatly appreciated :beer:

tigtag02

:hello:

I dont actually know the answer to this ~ well, I know that some companies can accept a reduced sum as final payment but I'm not sure what effect this has on your credit rating AND its not a hard and fast rule I dont think

Luckily for you I'm not the most knowledgable person around these parts

fairy23

thats cool...thanks for the input tho...

keeping my fingers crossed that that mght be the case :j

smarmo

Fairy,

Forgive me but it's people like you who make everything more expensive for the rest of us.

You spent £20k, you owe £20k, you should pay it back.

Before you default, think carefully about not being able to get a mortgage, credit card or loan again. You may save £15k this time around but you will be stuffed for the future.

PasturesNew

Also - implications on getting a job. Many employers either HAVE to do a CRB check on you, or choose to.

tigtag02

PasturesNew wrote: »

Also - implications on getting a job. Many employers either HAVE to do a CRB check on you, or choose to.

Whilst I agree with smarmo the above has NO relevance ~ CRB is the Criminal Records Bureau

However, some financial positions will do a credit check but the OP has already defaulted.

gibbyni

I have already defaulted on a few of my cards and laons etc and have had letters off the collectors offering up to 50% if i pay now. would love to do it but cant right now but in the next year or so i should be able to. I never received anything like that from the card providers just the letters to say i will be defaulted.

I would say keep paying them for now and only if they default you try it with the debt collectors

fairy23

i just came on here for a bit of friendly advice about something a well known free debt counselling service told me about... so i'm a wee bit offended by the 'people like you'.

I didn't say i wasn't going to pay it all back. i haven't been 'overspending', buying myself luxuries that i couldn't afford, i was forced to leave home with an 8 month old child 4 years ago due to domestic violence, some is things 'he ran up' after this time which is in joint names, he wont pay, so i have to, and i was homeless with a child and had no money

struggling to go through uni as a single parent to try and get a better job at the end, chances are i will never afford to pay it all back, if they accept settlements, then why wouldn't i.

defaulted some 3 years ago now, have had 2 crb checks since then..no problems, my bank are happy with me, after surviving on a solo card and no cheque book for the last 3 years they have just given me one, i now have a credit card also which i use very carefully...

anyway...i feel ive come to the wrong place maybe, came for advice really, didn't realise i would be judged...here of all places..

account closure in process

thanks to all those that replied, best wishes to you all

mrsspendalot

Hi Fairy - don't go. It is possible to get some creditors to accept full and final settlements, although maybe not for 25% of your debt. It is always worth a try though. CRB checks have nothing to do with your finances, so don't worry.

tigtag02

fairy23 wrote: »

i just came on here for a bit of friendly advice about something a well known free debt counselling service told me about... so i'm a wee bit offended by the 'people like you'.

I didn't say i wasn't going to pay it all back. i haven't been 'overspending', buying myself luxuries that i couldn't afford, i was forced to leave home with an 8 month old child 4 years ago due to domestic violence, some is things 'he ran up' after this time which is in joint names, he wont pay, so i have to, and i was homeless with a child and had no money

struggling to go through uni as a single parent to try and get a better job at the end, chances are i will never afford to pay it all back, if they accept settlements, then why wouldn't i.

defaulted some 3 years ago now, have had 2 crb checks since then..no problems, my bank are happy with me, after surviving on a solo card and no cheque book for the last 3 years they have just given me one, i now have a credit card also which i use very carefully...

anyway...i feel ive come to the wrong place maybe, came for advice really, didn't realise i would be judged...here of all places..

account closure in process

thanks to all those that replied, best wishes to you all

fairy

please dont close your account - MSE is a bery busy forum with poster from all walks of life, very few are intentionally judmental.

Its sometimes hard to come across how you really want to sound on the t'interweb so please please, dont be offended. Even if they meant it shrug it off with the knowledge that the majority of posters on here are FANTASTIC

And can I just point out again <coz I'm a little but anal :rolleyes: > that crb has NOTHING to do with debts, credit or money (unless you robbed a bank or commited fraud )

Hugs and instructions to hang around
tigtag

smarmo

Fairy,

Obviously I am distressed to hear of your misfortune and appreciate the difficulties of going through uni as a single parent. However, you are borrowing money that you clearly have little intention of paying back if you can get away with it: here is what you say:

"chances are i will never afford to pay it all back, if they accept settlements, then why wouldn't i."

Why wouldn't you? Because when you borrow money you should plan to pay it back. And, just for the record, you don't accept settlements, you ask for them. You are the one who decides.

Well, that's about it. FWIW I agree with Tigtag, no point in being offended and closing your account. We will agree to disagree and I will leave it there.