I can finally be debt free but in sad circumstances :(

StokieBecks

Definitely make offers especially to those debts that have been sold on to a debt collection agency. Keep everything in writing and make sure you don't make any payments to settle without having written confirmation that they accept the payment as settlement and the balance will show as zero and neither they or anyone else will persue for the rest.

Start offers low - if you go in too high you have very little wriggle room when they counter offer. Try and show with your current income and expenditure that you have little to offer then monthly and they are better to accept your offer.

Do not tell them you have inheritance. If they ask where the funds are coming from you just say a gift from a family memeber. Do not make offers until you actually have the funds available as many who accept offers put a deadline on them.

Have a read of the full and final settlement thread and make sure you use the template letter on the national debtline website.

For any debts still with the original creditor you arr less likely to get a good settlement offer (if at all) but obviously if you don't ask you won't get.

One thing I will say though is once you have cleared your debts you need to make sure you have addressed the reasons the debt built up so that it doesn't happen again. Sounds like it was mainly circumstantial but ensure you have a good budget for yourself in place in case for some reason your income dropped again (and to get you through retirement)

I am very sorry for your loss

thewiccaman

Thanks, @StokieBecks, this is really useful information and as others have recommended too, not to say how I'm funding this & propose low offers initially.

Is there a form letter I can use do you know? (sorry if it is already answered but new to the forums)

thewiccaman

StokieBecks wrote: »

One thing I will say though is once you have cleared your debts you need to make sure you have addressed the reasons the debt built up so that it doesn't happen again. Sounds like it was mainly circumstantial but ensure you have a good budget for yourself in place in case for some reason your income dropped again (and to get you through retirement)

I am very sorry for your loss

And yes, I don't intend to get into this situation again!

Willing2Learn

thewiccaman wrote: »

...Is there a form letter I can use do you know?

National DebtLine Sample letter - Full and final settlement offer

thewiccaman

Thanks, much appreciated.

LOVEHB

Sorry to learn of your sad news, I completely agree I would offer low at first, i managed to clear all my debts at 50% off saving over £6,000. Most of the people I owed to were charging extortionate interest and I do feel that they got the value of the debt and not the extra charges they wanted. Start at 10% i would do an SOA and enclose this to each creditor stating the left over balance each month. Also agree that you should say you are being gifted the money later on down the line once you have agreed figures with each creditor and are now contacting creditors to see what this would be.

Please do try to enjoy some of the money your mother left you, im sure she would be pleased that you are being responsible so dont dwell on the negatives think of it as a fresh start for you and your family!

thewiccaman

LOVEHB wrote: »

Sorry to learn of your sad news, I completely agree I would offer low at first, i managed to clear all my debts at 50% off saving over £6,000. Most of the people I owed to were charging extortionate interest and I do feel that they got the value of the debt and not the extra charges they wanted. Start at 10% i would do an SOA and enclose this to each creditor stating the left over balance each month. Also agree that you should say you are being gifted the money later on down the line once you have agreed figures with each creditor and are now contacting creditors to see what this would be.

Please do try to enjoy some of the money your mother left you, im sure she would be pleased that you are being responsible so dont dwell on the negatives think of it as a fresh start for you and your family!

Thanks for your kind words

The consensus is clearly to go for F&F settlement as far as possible and once I have the funds, I will start the process.

With any luck and a fair tailwind, I could have everything cleared by early in the new year if not before.

thewiccaman

Further to my original post last August and the fantastic & supportive responses I received then, I feel I should update that original post.

At the outset, though I want to state in the strongest possible terms I am in no way gloating or 'showboating' so if it comes across like that, I apologise in advance, I don't mean it to. I am all too aware how many people on here are struggling to become debt free.

In the time between my last post and now, I have been in contact with [I hope!] all my creditors/DCAs including Link Financial who I owed £1600 to from a defaulted credit card from maybe 15 or more years ago, long since off my credit file - they were still chasing me - and in most instances, I was able to get them to agree to partial settlements of between 25-80%. The fact that my credit file will show these debts as only partially settled doesn't worry me, to be honest.

Today, I received the first part of my inheritance payout and since 5 am, I have been paying off these debts.

From an original debt figure of just under £23,000, with discounts, I have only had to pay a little over £15,000 to settle all my debts. I am now officially debt free and have a small surplus as well which I have put into a savings account.

It is a surreal feeling after 20 odd years worrying about debts, post, phone calls, knocks at the door, I won't need to any more.

I am well aware though that I need to change my behaviour and aim to live a credit-free life in the future; I know all too well how easy it is to fall into a debt cycle and it is something I never want to have to experience again.

If you've read to here, I want to say 'thanks' again for the advice and support I got from my original post and to apologise again if this update comes over as boastful because I sincerely don't mean it to.

Sea_Shell

Well done!!

Former_MSE_Andrea

Congratulations thewiccaman!