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DMP Can I make an offer to pay off a credit card
gemmylouise
Posts: 102 Forumite
I've been in a DMP for 2 years and I have paid off over 8k of my debt (nearly half). I have 3 credit cards on my plan. The lowest one is for M&S with just over £1000. My relative is gifting me some money soon. Can I write to M&S with a percentage offer to clear the debt and close the account? If I can is there a standard template or acceptable percentage to offer them? Outnofnthe 3 credit cards M&S are the worst for putting defaults on my credit report so would like it closed asap. Can anyone advise me. Thanks a lot
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Comments
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Hi,
Yes of course you can make creditors offers to settle, just dont tell your DMP provider just yet (who i hope offers a free service ?).
National Debtline do a splendid template letter for the purpose, available here :
https://www.nationaldebtline.org/EW/sampleletters/Pages/Full-and-final-settlement-offers-%28sole-name%29.aspx
Once agreement is reached, and you have written conformation, just ask your DMP provider to remove the debt from your plan, no further explanation is necessary.
Start at around 30/40% of outstanding balance, you can always increase your offer, and remember its a negotiation, so dont expect the first offer to be accepted.I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter0 -
Thank you so much for this helpful reply. I am going to draft the letter today. I suppose if I don't ask I will never knowsourcrates wrote: »Hi,
Yes of course you can make creditors offers to settle, just dont tell your DMP provider just yet (who i hope offers a free service ?).
National Debtline do a splendid template letter for the purpose, available here :
https://www.nationaldebtline.org/EW/sampleletters/Pages/Full-and-final-settlement-offers-%28sole-name%29.aspx
Once agreement is reached, and you have written conformation, just ask your DMP provider to remove the debt from your plan, no further explanation is necessary.
Start at around 30/40% of outstanding balance, you can always increase your offer, and remember its a negotiation, so dont expect the first offer to be accepted.0
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