Making an offer of settlement

CrashOut

Hi Everyone! We have around 24k of debts on our DMP and it's not due to finish for some time. The stress has been unbearable and whilst I am 'coping', there doesn't seem to be an end. We private rent, so aren't able to sell property in order to pay the amount owed. We have been on our DMP for over two years and haven't missed a payment (paying around £360 a month). We have been told by my Wife's Dad that he is going to give us £12500 in September - and we really want to use this to try and settle with the creditors. Couple of questions: (1) is this something that SC will help with? (2) do you think they will all settle and how do we go about this? Really want to maximise the gift we are being given and make it count. Thanks so much!

Grumpelstiltskin

Have all your debts defaulted? Are any still with the original creditors?

What sort of debts are they? Credit cards, loans?

sourcrates

Stepchange will insist you pay them the £12,500 lump sum first and they will attempt to settle with your creditors on your behalf.

Now this is something I would not be comfortable with, for the following reasons:

(1) Stepchange are creditor funded, so have an obligation to see your creditors get a fair deal, that may not always be in your best interests.

(2) there will not be that much negotiation taking place.

Have your debts defaulted and have they been sold to 3rd party debt buyers?

If the answer to either question is no, then this is not the time to settle these accounts, as the best you will get is maybe 10/20% off, after time has passed and a sale to a 3rd party has gone through, you can be looking at 40/60% off.

Making CCA requests to all lenders is a "must do" first step in the dance regardless.

ManyWays

It would help a lot if you can say who the current creditors are, as some debt collectors are easier to negotiate with than others

Rob5342

Don't let Stepchange get anywhere near that money as they will want to pay the whole lot to your crediors and will have no interest in reduced settlements. 

As mentioned above, don't even think about making any settlement to anyone until they have defaulted and been sold on ans they have produced the cca after you have requested it.