Debts and Lump Sum Offer

Mesut84

Hello

After suffering a breakdown after debt worry, I am being given support in dealing with them.

I have managed to rack up  £45,000 over the last 15 years, which is humiliating.

A family member has come into money and offered nearly £30,000 to pay off some this debt, which I am incredibly grateful for. 

Some of my debts have defaulted after months of non payment, the rest are in arrears

I want to do what is right by my debts but also given myself an opportunity of a clean slate.

Should I use the money to clear as much debt as possible and then set up a payment plan for the remainder? Or attempt full and final settlements and try and clear everything now.

Thanks for any insight or advice that can be given.

Mesut

sourcrates

Full and final settlements every time, your creditors most likely have already had their pound of flesh from you, you never repay defaulted debts in full, as the debt companies that bought your accounts, did so for far less than there face value, so they can easily afford reductions.

Just remember there is a process to follow, and it will be more of a marathon, rather than a sprint, don`t expect instant results from this, creditors love to drag things out.

Usual process is this -

CCA all relevant accounts - any that come back unenforceable, put to bottom of the pile.

National Debtline have a very good template letter you can use for making offers, always do this in writing.

Start low, you can always increase your offer.

Mesut84

Thanks for getting back to me so quickly. 

Should I engage with the credit card providers who have yet to default? Or wait for them to default and sell on the balance?

Mesut 

sourcrates

Original creditors will be very reluctant to make any significant discounts, this is because you have yet to break the terms of your contract with them, you only do so when you default, so you can try a settlement offer, but don`t be surprised if its rejected outright, or what is offered, is significantly less than you expected.