Chances of partial settlement if on a token repayment or minimum DMP better?

Carrera74

Over the last 12 months I have been paying £1 to each of my creditors following years of struggling with a huge amount of debt, a failed DMP and months of putting my head in the sand and struggling due to my mental health taking a huge dip and then in turn getting further into debt. 

I have had 12 months to organise myself and have had a review and as I can only do the token plan for 12 months, my only option now is to do a DMP of a £5 payment to each creditor as due to my personal circumstances, I am unable to take any solvency options. 

Before the review, I had planned to make a low offer to settle my debts with each of my creditors after lurking on here but not sure if I go on the DMP if they will be more likely to refuse it even though I am only going to be paying each of them an extra £4 rather than the token payment.  Can anyone advise if it is worth continuing with the £1 token payment whilst I try to get a settlement or will a DMP be more favourable?  The amount I owe will never be paid off at this rate, but my circumstances may change in 4-5 years so I could try solvency then or increase my DMP payments if the partial settlements are refused.

I would only be able to offer a small amount to everyone but I don't know which if any of the types of payment above would make them more likely to accept or am I worrying for nothing and should just make an offer whilst paying something monthly?  I think I thought them receiving only a pound would make them more likely to accept a low offer as they'd have to wait years to receive it otherwise.

Any advice would be appreciated.  

sourcrates

You would be better off trying to obtain write offs rather than a DMP for such a small amount of money.

The debt would never be cleared, so your best bet is to ask them to make a commercial decision and write off your accounts, as there is no chance you will ever be able to repay them.

That would be a better strategy.

Carrera74

I have never considered that as an option, I didn't think that would be possible to do or attainable.  I will do some more research and ask for 'breathing space' whilst I give it some more thought. Thank you for your reply.

DjangoUnchained

i never understand the point of making small token payments. My strategy, which worked for me was to just stop paying anything. then it puts you in a stronger position to negotiate a full and final. I also believe they are less likely to take legal action as they cant be sure you have anything. im not an expert but its worked for me with virgin, mbna and hsbc. in the past. 

Carrera74

DjangoUnchained said:

i never understand the point of making small token payments. My strategy, which worked for me was to just stop paying anything. then it puts you in a stronger position to negotiate a full and final. I also believe they are less likely to take legal action as they cant be sure you have anything. im not an expert but its worked for me with virgin, mbna and hsbc. in the past. 

The point was to stop the constant incessant calls, emails and letters and to stop court action.  Next took me to court despite me telling them I had nothing to offer them but the £1.  The court ruled a £1 for my CCJ.