Full & Final Settlement on DMP

Rob5342

I think you need a bit of a change of mindset. You are an investment to your creditors, you can give them a nice easy return by making a settlement offer or make it a long drawn out process. Use that to your advantage, start with a low offerand try again in 6 months if they reject it.

Don't worry about riling them, you are just an entry on a big spreadsheet to them, all they'll care about is what they can get back from you. If you make a CCA request and they can't fulfill it then your account just becomes one of their no hope ones. 

RAS

The whole idea of credit is that the provider makes a profit because you pay back more than you borrowed. Which is why if they think you are a risk they set the rate at 25-40%. That means the "interest" should repay the principal before you go bust.

If your debt has been defaulted (they all are, aren't they? Check if you don't know), and sold on, the new owner will have paid peanuts. Old debts that might be statute barred etc are bought in bulk, sight unseen and details just shoved in the computer to generate letters. If they bought  £1m of debt for £50k, some of which is being paid off at £10 per month, it easy for them too make a profit agreeing for other debts to be settled for 30% of value and make a profit.

debtwarrior100

Lots of really helpful comments thank you. I do have one creditor that has remained the same from the beginning. They are government back loans company for start up businesses. They were really good to me and I had a personal relationship with them. I feel like I need to be a bit more careful with them but everyone else are creditors who have bought the debt due to it defaulting. 

infinitelove

RAS ,I totally agree with your statements. Most creditors has already make their money by charging borrowers high interest before that one default, you pay more than you borrowed ,yet when people default they set collection agents after that borrower to collect money, hence they sell those debts cheap, its just not fair i think.  
But anyway in all these things, knowledge is power. i love this forum, it has taught me a lot, i wish i have been here before i acknowledged that mortgage shortfall . Thanks you all for these incredible eye opening lessons you are sharing here.