Advice for debt

HOUSER2280

Hi all. I have a debt being collected by Intrum.  It has been getting collected via stepchange for 8 years now.  I have £33k outstanding and at the rate I'm paying it's going to take me another 62 years to pay it off.  Is there any advice you can give me with Intrum to get some kind of settlement off with them? As mentioned I've paid them for 8 years at approximately £50 a month so I'm guessing they have been well paid back what they paid for the loan.  Does anybody have any advice or even if it's a good idea to stop paying them? 

[Deleted User]

HOUSER2280 said:

Hi all. I have a debt being collected by Intrum.  It has been getting collected via stepchange for 8 years now.  I have £33k outstanding and at the rate I'm paying it's going to take me another 62 years to pay it off.  Is there any advice you can give me with Intrum to get some kind of settlement off with them? As mentioned I've paid them for 8 years at approximately £50 a month so I'm guessing they have been well paid back what they paid for the loan.  Does anybody have any advice or even if it's a good idea to stop paying them? 

£50 per month over eight years is £4800. How much did you borrow and at what interest rate?

sourcrates

There are a number of ways you can move this in a different direction.

First, you can make a CCA request for information under sec 77 CCA, for a copy of your original credit agreement, failure to provide may result in the debt becoming unenforceable.

Second, if you have a lump sum, you could make Intrum a settlement offer.

Third, if the payments are becoming a burden, and are unfordable to you, ask Intrum to make a commercial decision and write off the debt, as you can no longer afford repayments and have no real prospect of ever repaying the debt.

All depends on your personal circumstances.

CCDarkside

If you've been paying for this long with no change in circumstance its unlikely you will get the debt written off.  After all £50 a month provides them with free chocolate biscuits in the break out area.  I'd be looking to cite a change in circumstance which will affect your ability to make that continued payment in the future.  It could well be a change in employment, age or health (mental or otherwise, as a debt burden is very detrimental to good MH...), then a one settlement could well be considered.

But absolutely make them prove it first.  One place I worked managed to shred 2 years worth of CC Agreements when they had a fork lift driver move the wrong pallet from active into storage.  They only noticed when the CFO requested his archive box back (he wanted his kermit mug back from being in storage) and no one could find it.

HOUSER2280

The original loan was for £30k and the interest rate was about 5% I think.  Over the years the amount I have paid a month to StepChange has gone up and down slightly but not much.  £50 is average.  I'm currently paying £44 a month.  I have applied for a CCA which eventually turned up.  Would you recommend reducing this payment to a nominal payment?  Also it's been mentioned letting them know a change in circumstances.  None have changed but would the check?  

ManyWays

is this your only debt left in the DMP and do you have others outside it? 

HOUSER2280

Just this one 

MEM62

HOUSER2280 said:

The original loan was for £30k and the interest rate was about 5% I think.  

HOUSER2280 said:

It has been getting collected via stepchange for 8 years now.  I have £33k outstanding and at the rate I'm paying it's going to take me another 62 years to pay it off.  

The numbers are not adding up for me.  How can you have been paying for eight years and owe £3K more than the original loan amount?  

HOUSER2280 said:

I have £33k outstanding and at the rate I'm paying it's going to take me another 62 years to pay it off.  

£33k @ £50 per month is 55 years.  Where does the extra 7 years come from?  Again, not adding up.  

Are you sure you have your numbers right?  

ManyWays

How old are you, and do you have any health problems that will make it hard to work up to retirement age? Are you buying or renting? Is there anyone in your family that could help offer some money to settle this early?

RAS

I seem to remember someone pointing out that the limit for consumer credit loans is £25k? What sort of account was this?

HOUSER2280

Hi all, just got the official details.  The loan was for £30k with an interest rate of 8.9%.  It was over 120 months with monthly repayments of £372.86.  Total amount payable £44.743.20.  This was back in 2016 when Tesco were offering £30k personal loans.  All very crazy I know.  I got myself in a right mess at the time.  So basically for the last 8 years I have only been paying the interest off.  I think I made less than a year's payments at the time before it became too difficult.

Any advice would be much appreciated.