Is there a minimum payment?

Pumpkinmad

Hi all, I’ve followed all the advise so far on here and 4 debts are nearly at the point of defaulting now. I was out of my depth anyway which I take full responsibility for, in the past few months my husband has also left meaning what I can now afford monthly is VERY small. So my question is once the debts are sold on if I can only afford to pay each one say £25 (they are all similar value) will they take that with not too much fuss and then leave me alone on the whole or will they come after me threatening CCJs or further action? I really don’t have any more spare income now and need to find some calm back in my life. Thank you 

Altior

Typically yes, if they are receiving material payments and it looks like that's all you can afford, they aren't going to waste money chasing court action and only get the same payments at the end of it.

Are you planning on a DMP? If so, self managed or via one of the debt charities?

If using a charity, typically they'll want to treat each of your creditors proportionally, based on the spare income you have to use on reducing your unsecured liabilities, ie unlikely to be an equal £25 across all of them. 

sourcrates

First off, debt purchasing companies buy these accounts in bulk, for around 10p in the £, so very cheap.

And as all unsecured credit debt is deemed to be "non essential" debt, it gets paid last of all, with the recent cost of living crisis still biting hard for lots of people, they will be pleased to get any kind of payment from you, as non essential debt is not a priority payment.

You work out your budget first, and what`s left over goes towards debt repayment, there is no "will they accept" or any "threats of further action", they get paid what you can afford and not a penny more.

Affordability is an FCA requirement for all creditors/debt collectors and debt purchasing companies, which is why they push it so hard nowadays, as they will be open to enforcement action if they do not do correct affordability diligence.

So have no worries on that score, you are in charge of this, no one else.

Pumpkinmad

Thank you for the replies, made me feel a lot better