Unsure of the best route

wolveswolves29

Iv currently got a 20k novuna personal loan witch is currently in arrears due to me going on a PP Iv had a family memeber offer the money to pay the debt off but what route can I go down as it’s giving me a settlement 22k or with the loan and arrears they are asking for 28k overall it’s nearing defaulting but will it be 22k or 28k? and hoping it if I default I’ll be able too offer a slightly lower partial settlement offer or is worth asking them directly for a settlement offer of what Iv already paid off the 20k loan or waiting for the default , also worth mentioning it’s with the FO under review at the moment for unaffordable lending 

ManyWays

 Is the money from family a gift, or will you have to repay it?
What are you paying a month and is this affordable?

wolveswolves29

It will be a gift , is it worth waiting for it too default or just taking the offer of 22k now, I’m just thinking it’s just less money to pay towards it, Iv got defaults already so not too worried about credit score

ManyWays

If you want a lower settlement you will have to wait until it defaults and then is sold. The other defaults, are they recent? Have they been sold to debt caollectors/

DankVielen

wolveswolves29 said:

Iv currently got a 20k novuna personal loan witch is currently in arrears due to me going on a PP Iv had a family memeber offer the money to pay the debt off but what route can I go down as it’s giving me a settlement 22k or with the loan and arrears they are asking for 28k overall it’s nearing defaulting but will it be 22k or 28k? and hoping it if I default I’ll be able too offer a slightly lower partial settlement offer or is worth asking them directly for a settlement offer of what Iv already paid off the 20k loan or waiting for the default , also worth mentioning it’s with the FO under review at the moment for unaffordable lending 

The first step is WHY DO YOU CARE?  Usually people care about debt because they need credit, perhaps a mortgage or buying a car or even a mobile phone contract which is a mini mortgage these days.

Your credit record will likely have been ruined if you have not been keeping up payments and it will take 6 years to fall your credit record.  If you are not good with money (which let's face is happens to us all if life deals us circumstances we can't control), then not having any credit facility can be a good self discipline, I would bet that 99% of the debts that people come on here with concerns about include irresponsible lending by the creditor.

Some things you need to understand.

1. They deliberately try to put you in a position where you can afford to service the debt (with interest) but can't afford to pay it off, they do this by offering you more and more credit, then you find you can't get a zero percent card and they then own you or so they think,

2. They did not work for the money they lent you, this did not inherit it, nor did they borrow it themselves, they invented the money out of thin air by creating an agreement on their computer.  They pay up to 3% to the central bank that acts as a kind of insurance and then they can charge you up to 39.9% interest.

Novuna calculator on their website says they offer 6.5% APR but you can be sure that if you have not kept up payments as part of the agreement then they probably charge more

Representative Example:

Monthly repayment £389.57

Interest rate 6.5% APR

Total amount payable £23,374.20

Loan amount  £20,000.00

Loan Term 60 months

In their eyes you contracted to take out a loan for 60 months and they would have earned £3,374.20, so to them, an offer of £2k is a discount and that is on the original agreement, goodness knows they they got it to £28,000, you might want to take advice here on an FOS complaint.

A quick look at the MSE Credit Card calculator shows that on a credit card the figures would be

Making the minimum payment of: The greater of 5% of balance or £390.

---

This £20,000 debt will take 3 years and 6 months and cost £1,888 in interest at 6.5%

https://www.moneysavingexpert.com/credit-cards/minimum-repayments-credit-card/

The problem is you have shown your cards and as such you have shown what in their eyes is weakness, luckily it was an offer of a gift from a family member, so you can tell them that they have withdrawn that offer as you have fallen out.

Never ask them for anything, never communicate (at this stage) just stop paying and let the stuff hit the fan, they will be cursing the day they did not offer you what your relative was prepared to offer.

I had debt of around £90k, I did not pay a penny, I did not have an emergency fund because I had no money coming in, I coulda shoulda woulda claimed benefits years before but I had an aversion and it took quite a lot for me to do that via a charity.  Even then I could barely survive on what was provided.

My plan was to wait for the 60% discount from the Debt Consolidator they sold it to, but they took too long so I waited the six years.  One got a CCJ but they did not get a penny despite using two debt solicitor firms, the fact is you can't get blood out of a stone.

If you have a family member with £20k to waste then ask them to put it in an ISA for you.

Stop paying your unsecured debt and post an SOA so people here can help you budget without the loan.

https://www.lemonfool.co.uk/financecalculators/soa.php

The BEST way is to

1. Buy a £1 sim and a non smart phone, then register a new email at a different ISP.

2. Inform your creditors that you have changed contact details as you were victim of scammers and spammers.

3. Keep the phone on and answer it but do not acknowledge debt, just say you can't speak right now and can they call back another time, then end the call.

4. Prepare a lever arch file for all the letters you will inevitably get and ignore.

5. Look at the cause of your debt, get help if it is gambling or shopping compulsion (use freecycle to get stuff)

6. Start saving towards your emergency fund so that in a year or two when they offer you a real stated discount of at least 40% off or 60% off if you are patient, then you will have the money to settle the debt or you can just let it ride.  Some get a CCJ but it changes nothing really, £1 a month for 6 years is £72.

DO NOT ENGAGE, DO NOT MAKE OFFERS, let is come from them, even if it takes a year or two or six.

If you are desperate to do a deal they think they have you, if you are indifferent, stop engaging at all and maybe even move then they have nothing, there are ways to go completely off radar which makes you the complete opposite of low hanging fruit.  No information on Credit Reference Database means they are blind, so no signs of spending or borrowing as these would be triggers for them and they would get an alert.

I just wrote saying that due to a massive change in my circumstances that I could not envisage changing in the foreseeable future I would not be making any further payments to the account. That was it, no detail, no affordability forms, nothing, just crickets. Sure they can write some pretty nasty letters and I was in anxiety from the whole situation, but someone at National Debtline suggested I put all letters that seemed to be debt (google the return address) in a plastic bag until I was in a fit state to cope with them.

Years later I put them all in a lever arch file and now I have a nice collection with a section for each debt. 

The debts all became statute barred except one that had a CCJ but that expired too,  technically I might owe the debt still but under CONC rules they are not allowed to enforce it.

Ironically the Debt Consolidator sold my debt despite it being statute barred, so now I will play with the debt collectors appointed by the debt manager.  So far they have had two debt collectors on it and I even had a door stepper who might be appearing on YouTube soon, but not sure I have the tech to do that. I did not answer and they eventually put a letter through the door.

As I know the debt is statute I might apply for a bit of credit that I know will fail just to wind them up!

Remember that this money they lent you never existed, they invented it and it was clearly irresponsible lending otherwise you would have been able to afford the repayments.

If you take anything from my post let it be DO NOT ENGAGE.