Debts piled up, no payments made this year - HELP

PoorGuyNextDoor

Just a quick update. A few of the creditors have got back to me offering 30% off for f&f. Does that seem enough or do you think I can push for more? Even an extra 10% off them all were speaking 5k difference with my level of debt. I’m going to get back to the smaller ones and say il take the 30% if they can mark it on my file as paid and satisfied and not partly settled, is that allowed by then If they agree to it?

I’m plodding along at work, was planning on taking two weeks off over Christmas but it looks likely il just take a few days, xmas day, Boxing Day Hogmanay and New Year’s Day. Apart from that il be working as need to maximise income so I can finally see some progress to clearing these debts.

Just wondering how people cope with 70+ hour weeks all the time without burning out. I feel like I need to do it January to get caught up and creditors off my back, stop the (what feels like hundreds) of letters coming through the door each day.

We all need a plan so I’m trying to note down some short term goals and then some long term, 12 months - 3 years. Who knows what I can achieve in the next 12 months.

If all creditors keep saying 70% f&f then that puts my total to find and pay them at 35,000, a lot less daunting than 50,000 it’s currently at. Also gives me motivation to know bankruptcy is avoidable and I can deal with these debts on my own.

Just got to get my ideas down on paper, make a realistic budget and stick to it then earn as much as possible...simple right??

enthusiasticsaver

Are you in a position to do F and Fs ie as in do you have any spare cash sitting around? Presumably not or you would be paying the debts off. F and Fs don't usually mean they will allow you years or months to pay them off.

Generally you would default on the debts, save up emergency fund as you won't have access to credit then make an arrangement to pay based on your basic affordability (no overtime, bonuses, second jobs or whatever. You save any spare income for F and Fs while paying basics and after a while (usually quite a long time, years rather than months) you offer F and Fs. 50% is a good one to start with although some have got lower. Whether they accept them depends on how long it will take you to repay them in full, whether they sell your debt on to collectors or how much spare income you have. Offering F and Fs at the beginning of your journey seems strange but maybe others can advise better.

PoorGuyNextDoor

Payday loans I’m owe are at £1,461. If I was to get that at 30% discount for f&f then I could probably pay the £1,022 off in jan/feb. It’s split between 3 lenders so just one at a time, get them out the way and move on. One of them is asking for 370 on a 600 debt. Not quite 30% but still a good discount I think seeing as they are the most recently taken on loans.

Are creditors allowed to mark it as fully settled and satisfied if I don’t pay the full amount? Say we agree the 70% and I pay that do they legally have to mark it as part settled?

In the meantime I’m going to look at rebuilding my credit rating if anyone has advice on that? It’s absolutely shot to pieces just now. No IVAs or CCJs etc just defaults. I doubt I’d even get a low balance credit card. It’s just for future for a mortgage, sooner I look into improving it the better but obviously a mortgage is years away.