Really appreciate some help here

Suseka97

theoretica said:

Why isn't the advice to start with asking if they would write the debt off?

Of course that's certainly a possibility that the OP could explore; I was just responding to the CCA and F&F query.

There are resources on line, that provide advice on how someone can go about seeking a debt or debts to be written off.  This sample template is a good start. https://www.nationaldebtline.org/sample-letters/write-off-debt/

The special circumstances would be where the OP would explain about her current medical situation and of course she will no doubt have the medical evidence to support the request.

OP,  I appreciate you could well do without the debt hanging over your head whilst you are going through treatment and perhaps seeking a write-off should be the first approach.  If that does not prove to be successful, then there's nothing stopping you offering a settlement figure - but I would avoid mentioning the insurance payout.  That is intended for you to live on and pay your priority bills, should you be unable to return to work.

It won't be a quick process, whichever route you choose - so just take it one day at a time and try not to let the worry of your outstanding debt impede your recovery.

katiepoppycat

I'm sorry to hear about your health issues.  I hope you have lots of support and I admire how you are trying to sort this out.  The situation is not the same, but I have been helping my dad sort out credit card debts going back years.  We started by using this same template to request CCAs.  Only 1 creditor could produce it, the rest couldn't.  We immediately ceased token payments on those that couldn't, and started making low offers.  We ignored all subsequent requests for budget info, telling them it wasn't relevant.  We kept writing back reiterating that we were under no obligation to pay anything at all and that we were making a gesture of good will.  Eventually, we settled some at 12%, the rest are still ongoing.  I initially raced ahead on this, wanting to sort it out fast but it is a slow process - 3 years in and not sorted, which is something to be prepared for.

Maghelp

Thank you all for your advice really appreciate it. Not been on for a few days as not been well. 

I think I’m going to just do 10% full and final settlements with creditors advising them of my current health situation. Say the offer is valid for 10 days. See what they come back with. If it’s a no then just continue with the token payments and forget about it for a few years and save some money. I’ll know one way or the other then and can just concentrate on my health. 

Am I ok to email the Full and Final Settlement offer? Obviously, if they accepted would ask for the agreement in writing? (My printers not working properly so would be a hassle to get the letters printed). 

I’ve drafted a letter to email, so am ready to go once I get some advice on whether it would be ok to email. 

Thanks for your help. 

Maghelp

Thanks @sourcrates 
@DFW_ASAP 
@Suseka97 
@theoretica
@katiepoppycat
are you able to advise on my query above and on sending the F&F by email. 

Thanks in advance. 

enthusiasticsaver

Personally I would not rush straight to F and Fs.  You have been paying tokens for 4 years and presumably they do not know of your health issues.  As you have a serious health condition and a very young child I would hang on to as much as you can if there is anything left from the insurance payout because you may need that to live off if you are unable to work.  Requesting CCAs is a good idea though as you will then know whether any of these debts are enforcable.  I personally would be asking them to consider writing them off as you are bound to get questions if you offer settlements even 10%. @Suseka97 has put up a link above. 

Maghelp

@enthusiasticsaver I appreciate your reply and advice. You’ve made me really think more about my situation, think things through and you are right. I’m not going to rush with the F&Fs.  This has been really stressing me out but I need to concentrate on my health and prioritise me and my little boy, not the debts. I’ll try and put any money left away as I may need it as don’t know what may happen in the future. I will just continue with the token payments and notify them of no change to my financial situation if they ask. I will ask for CCAs when I decide to do anything further in the future. 

Thank you again for your advice. 

enthusiasticsaver

I think doing nothing at the moment is probably for the best. You need all your energy to focus on your health and your son. I can understand why you want to draw a line under this but it won’t be a quick process so while things are ticking along until your next review or you find the time and inclination to write asking for CCAs and maybe tell them of your health condition and ask for them to be written off. I do hope things turn around for you soon and you have some support. 

Maghelp

@enthusiasticsaver thank you

swampduck

I'm sorry to hear about your health issues and fully understand what you are going through - having been there myself five years ago.
As others have said I wouldn't rush in to pay F+Fs - if anything when your sick pay runs out then apply for Employment support allowance - this will give you a small income while you recover at your own pace.
Due to the possibly reduced income - I would do a new statement of Affairs using the reduced income and send this to your creditors - it's most likely that they will reduce your payments on affordability grounds.
But the priority here is you, your health and your family. They are worth so much more. Look after yourself.