Paying off debt with inheritance - how to do it?

shadow81

I'm currently in a DMP with Stepchange for total debts just under £15k. I am receiving a cheque from my late grandmothers estate in the next couple of weeks for £10k. I am going to use the money to clear as much of my debt as possible.
What is the best way to do it and how much could I expect my creditors to accept as partial settlement to close the accounts? Would I be better going through Stepchange to negotiate the settlement or would it be better to liaise with my creditors myself?

Willing2Learn

I recommend that you submit a CCA request for each eligible account before you make any offers. It has the potential to save you a bit of money.

Have a read of the following DebtCamel article, as it explains what a CCA request is and why you should make the request before making an offer.

Debts - why, how & when to ask for the CCA agreement

And you are probably best off making any offers yourself, as StepChange will require all offers are made pro rata out of your lumpsum inheritance. But that is okay as the process is simple.

And happy new year!!

sourcrates

Willing2Learn wrote: »

And you are probably best off making any offers yourself, as StepChange will require all offers are made pro rata out of your lump sum inheritance. But that is okay as the process is simple.

And happy new year!!

Most definetly do this yourself.


Stepchange will require you to pay them, the full lump sum, upfront, before any negotiations have taken place, you may end up not clearing your full debt, also they will not accept an account deemed unenforcable as a valid reason not to pay it.


You can see where this is going can`t you........