Advice needed please

tomandjerry

Hi all,

I have tried to contact National Debtline several times through a chat online, but it's impossible to get the answer. They closed the chat before it even started. Not impressed!

Anyway. I have questions re: my debts
I have received letters from a debt collectors company...1. about my unpaid debt I paid via dmp, but stopped last year March/April.

2. credit card...the amount due must be inclusive of interest which accumulated over the period of time; how could I not pay interest charges, but the amount I actually spent?

I don't have any statements to compare. When I moved I must have thrown them out.

They want to agree to affordable payment plan, otherwise my account goes to CCJ as a result. Should I worry about CCJ?

Many thanks,
taj.

Willing2Learn

1. Why did you stop payments? Has your circumstances changed?
   
2. I don't understand the question. Are you asking how you get a creditor to freeze interest and put the account on hold?

You need to send your creditors a copy of your current monthly budget (income and expenses). You can calculate what are affordable payments from that budget and make an offer (new payment schedule) from that.

tomandjerry

Hi Willing2Learn,

Yes they did. I moved away and back.
The cc is not in use anymore and the amount due looks similar to what I remember, but there were interest charges already applied. Could I ask a dca to ask cc company for the amount without the interest?

Debt more than 6 years old - it's through a different creditor, but a letter arrived from the same dca. So they know about both debts. Could this old debt be written off?

Many thanks,
taj

Willing2Learn

Are both your debts older than six years? Have you acknowledged the debts in some way, or been making payments to the credit accounts over the last six years?

If you have exceptional circumstances (and supporting evidence), you can have debts written off.

The cc debt is being managed by a DCA yeah? If the debt includes accrued interest while the cc company owned/managed the account, then that is what you owe. You can make a full and final settlement offer to the DCA, where you offer a reduced sum as a settlement of the account.

tomandjerry

Only one (originally with Lloyds) is more than 6 years. Last time I paid through dmp March or April last year.
CC (Barclaycard) is less than 6 years. Again, last payment I made was last year March.

I have not responded to any of those recent letters from dca. They started coming only in the last month or so. They were asked by my creditors to agree an affordable payment plan with me.

Can I offer whatever sum (small) to settle both accounts?

taj.

Willing2Learn

You can make any f&f settlement offer you like. It is always best to start low.

How much do you owe on each account? What is your income? What are your outgoings? What f&f offer can you afford to make?

If you were to re-start a payment plan, is there a realistic, affordable option for you (that works over a reasonable timescale when taking into account your monthly budget)?

tomandjerry

Old debt is about £2600, CC £5240...could pay about £100/month. F&f for old debt £300, for cc £450-500.

My current situation is not good. I took a new job in order to gain new skills, but on much lower income. I would have to do lots of overtime to pay for debts quickly.

Willing2Learn

It would be good (useful) if you could post up your SOA, so that we can see what your monthly budget look like. Maybe there will be ways to reduce your expenses and/or increase your income (completing surveys for example).


If my mental arithmetic is correct, you would repay your debts in full over 78 months (over 6.5 years), if you were to pay £100/month. That assumes that the £100/month is realistic, affordable. Your f&f settlement figures mean you would be offering the DCAs 10% of the full amount.

tomandjerry

How likely are they to accept that amount? I mean f&f settlement amount?

Thanks,
taj

Willing2Learn

If they feel they are likely to get better returns from you, by having an affordable payment plan, then the chances will be low. Though I don't think it is unheard of to have such a low amount accepted.

tomandjerry

I see. I can suggest a monthly payment of £100, do a lot of overtime and then suggest a f&f settlement amount...like £3000? I am hoping to save that in the next 6 months or so.