Dmp to debt free stratergy

Gftes

My partner is currently in a stepchange plan and has debt of circa 19k (from looking at her credit report) all are in default ATM so intrest frozen which is good. This is split as below.

Wescott 7.6k
Zopa 5.8k
Pra 1.3k
Capital one 472
Wescot 175
Studio 163
Tesco 155
New day 100

She pays around £196 a month so will be debt free in about 8 years if she continues with her current plan and doesn't save anything a month for a rainy day.

I have come in to a bit of money recently (6k) and am prepared to use this to try and get her debt free.

Full and final offers to all of them seams like a good option, will her creditors be able to talk to me directly as my partner finds it very stressful having to talk to them.

Before I start negotiating, I think I need to review her budget as this needs to be realistic and the lower payments the creditors receives to the smallest amount possible, making it appear the debt will take longer to pay so making them more likely to accept a lower settlement offer.

Is it worth her stop paying into the plan for a few months other than token payments as her car has just broken and need fixing so she can get to work!, Which worst case I sort, but in reality this is a "life event" so stepchange should adjust her plan accordingly?

Does this seam sensible?

Thanks in advance for your help

Regards

James

tlc678910

Hi,
I think you need to be very careful to not let this money (lending/gifting it) alter your relationship or come between you.

If you do this for your partner do you expect to be repaid? If you expect to be repaid this may become a source of tension if your partner doesn't / can't pay you sometimes.

Will you be cross or upset if your partner begins to take new credit and build up debt again - many people do. You mention your partner can't save for a rainy day with their debt payments but that is not their habit and to break old habits and stick to new ones is hard.

Unless you have seen long term changes in the way finances are handled and you two are now genuinely a team with your finances I would leave your partner to continue paying their plan. I assume most interest is frozen anyway.

Tlc

sourcrates

Hi,


Just from the basic information you have provided, i doubt you/she will be able to clear 19k worth of debts for 6k, however that does depend on weather all the debts are enforceable or not.


A full statement of her affairs is a good starting point :


http://www.stoozing.com/calculator/soa.php


Next, send a CCA request to each creditor, see if they can all provide compliant paperwork, info and template letter here :


https://www.nationaldebtline.org/EW/sampleletters/Pages/Information-about-your-agreement-under-the-Consumer-Credit-Act-%28sole-name%29.aspx


Once all relevant info you have asked for has been received, then its time to make offers to the creditors, you do this in writing, you can ring and negotiate over the phone, as long as she gives them permission to speak to you, but any agreement MUST be backed up in writing to be legally compliant.


The template letter for this can be found here :


https://www.nationaldebtline.org/EW/sampleletters/Pages/Full-and-final-settlement-offers-%28sole-name%29.aspx


As you can see, this process can take a long time, expect six months to a year at the very least for all compliant paperwork to be received, or to be told its not available.


You may want to save this post for future reference.