Payplan and clearing debts

RAS

You're not going to get a reduced settlement until the debt has been defaulted, been sold on a few times and the new creditor decides getting 30% for a debt they paid 10% for is profitable. Wait for them to contact you.

davetheman007007

Most have been defaulted, should I wait for all to default?  Some have been sold to a new creditor, but only a couple. So am I best to wait a bit longer then?  I will start my offer at 50%

fatbelly

You may be able to do better than 50%. If that's where you want to end up, start by offering 30% of the balance

davetheman007007

Thanks, may as well try that, but no point in contacting the main company, ie don't contact Barclaycard wait until sold?

RAS

Have you saved a good emergency fund whilst waiting for the defaults? Because people who rush onto DMPs with charities often end up in a pickle because they have a domestic emergency and no fund, so have to suspend payments for a month or more.

If so, work out the total amount you think you can afford.  Based on other members here, you likely over-estimate so keep back a percentage until you have lived with the new budget for a year. 

Split the revised amount prorata between your all creditors, defaulted or not, so the one you owe £2k gets twice as much as the one you owe £1k. Start making the prorata payments to creditors once the default is issued.

Note many original creditors will sell or assign a debt once defaulted so wait 3 months and keep on eye on your credit records. Defaulted debts often disappear, only to reappear in the name of the new creditor a couple of months later. 

davetheman007007

Have received the below letter from HSBC, should I send my letter now or wait longer?

RAS

What are the consequences of failing to pay the full amount? Hopefully a default?

If so, hang tight until the New Year and hopefully you'll get that letter.

davetheman007007

Thanks for that, Capital One have sent me a default today, so do I contact them or wait and see if it gets sold onto somebody else?

sourcrates

davetheman007007 said:

Thanks for that, Capital One have sent me a default today, so do I contact them or wait and see if it gets sold onto somebody else?

In all cases you wait and see who writes to you after the default gets registered.

Capital one can be particularly slow with their debt collection process.

davetheman007007

Thanks, I have received the below email regarding my Zopa, should I contact Lowell with an offer?

We’re writing to confirm that your Zopa credit card, which you took out on 12 October 2022, has been sold to Lowell Portfolio I Ltd. We’ve sent you a letter with more information but wanted to send you an email too to make sure you’re aware of what’s happening with your account. Here’s everything you need to know.

Why this has happened

We sold your credit card because you're behind on your repayments and Lowell Portfolio I Ltd specialise in supporting customers in situations like this. This is in line with the Terms and Conditions of your account, which won’t change due to this sale.