Defaults Running Out

tigergambit

The remaining 5 are all with Link. The lowest of those is an overdraft debt so couldn't be CCAed but they are being stubborn with a 90% offer. If they were to bring that down to 30-40%, I'd likely be able to pay that in a few months too which would knock another off.

In the last few months I've already halved what I was paying to all the debts (from £180 to £90) as a result of cost of living and also hoping the lower payments will encourage them to offer bigger discounts.

Good! This is the correct approach imo.

I've never had to deal with Link but my approach was to offer around 30% to creditors. I had one taker. I then waited a year as I was on low payments anyway and then offered 23% with an explanation that as I was nearing retirement, had mortgage renewal looming etc. Etc.  this was likely to be the best I would ever offer.

Combined with a reduction in payment amounts this seemed to concentrate minds wonderfully and a further 5 settled, leaving two holdouts, Tesco and PRA who currently receive £1 a month each.

I'm letting them swing for a while but will probably make them another offer next year. I look on this as a long game and as long as monthly payments are not punitive that is to our advantage.

bcs7

tigergambit said:

Good! This is the correct approach imo.

I've never had to deal with Link but my approach was to offer around 30% to creditors. I had one taker. I then waited a year as I was on low payments anyway and then offered 23% with an explanation that as I was nearing retirement, had mortgage renewal looming etc. Etc.  this was likely to be the best I would ever offer.

Combined with a reduction in payment amounts this seemed to concentrate minds wonderfully and a further 5 settled, leaving two holdouts, Tesco and PRA who currently receive £1 a month each.

I'm letting them swing for a while but will probably make them another offer next year. I look on this as a long game and as long as monthly payments are not punitive that is to our advantage.

Yes, I've realised that now it's just going to be a long game of paying small amounts and making offers every 6-12 months until they drop to some kind of reasonable discount.

With my smallest debt with Intrum, I initially offered 20% which they countered with 80%.
It then took about a year for the counter-offers to drop down to 60% then 40%, which I took.

Link seem to be being a lot more stubborn though, so I think it's going to be another few years before they come down to a reasonable level, particularly with the 90% offers.