Advice on Partial Settlement whilst on DMP

YourLad97

Hello,

I’m getting towards the last quarter of my DMP journey and my sister has offered to help me pay it off if I can get a reduced rate.

I've phoned one of the creditors - Lantern. I have a guarantor loan with them which has £4,200 left. They’ve offered me only 25% off. I know my sister and I know she’ll help me only once I get it down to 60% with 50% being the minimum.

Do you think it’s realistic? I don’t want to get my hopes up.

Also I have one other loan with Tesco Bank - are they likely to also settle for that?

I don’t know if I’m asking a lot. These debts have all defaulted around 6 years ago.

Grumpelstiltskin

OK Who is your DMP with?

The first thing you really need to do is self manage the DMP. It's easier to get settlement figures yourself, but before you start you need to send for CCAs, if they can't be produced you can just stop paying them.

YourLad97

My DMP is with StepChange. I’ve been with them for a while now and getting towards the end hence why I’m not really self managing…

MEM62

YourLad97 said:

I've phoned one of the creditors - Lantern. I have a guarantor loan with them which has £4,200 left. They’ve offered me only 25% off. I know my sister and I know she’ll help me only once I get it down to 60% with 50% being the minimum.

If the lender has a guarantor on the hook they will be less likely to negotiate.  

YourLad97

MEM62 said:

YourLad97 said:

I've phoned one of the creditors - Lantern. I have a guarantor loan with them which has £4,200 left. They’ve offered me only 25% off. I know my sister and I know she’ll help me only once I get it down to 60% with 50% being the minimum.

If the lender has a guarantor on the hook they will be less likely to negotiate.  

That’s what I was thinking. Do you think there’s a chance they’d settle for 50%? That’s the absolute maximum I could do.

Grumpelstiltskin

It is not difficult to self manage and you then have full control of what reduction you can get from different creditors.

Things won't happen at the same time with different creditors, again much easier to manage if you are in charge not Stepchange.

tigergambit

YourLad97 said:

Hello,

I’m getting towards the last quarter of my DMP journey and my sister has offered to help me pay it off if I can get a reduced rate.

I've phoned one of the creditors - Lantern. I have a guarantor loan with them which has £4,200 left. They’ve offered me only 25% off. I know my sister and I know she’ll help me only once I get it down to 60% with 50% being the minimum.

Do you think it’s realistic? I don’t want to get my hopes up.

Also I have one other loan with Tesco Bank - are they likely to also settle for that?

I don’t know if I’m asking a lot. These debts have all defaulted around 6 years ago.

Regarding TESCO, you can ask. I offered them 23% recently (they have no chanve of me ever paying the full amount) and they responded with 50% so there may be a chance there - best previously was 60%. I have found them very difficult regarding F&Fs, although they are willing to accept £1 per month forever.

sourcrates

YourLad97 said:

MEM62 said:

If the lender has a guarantor on the hook they will be less likely to negotiate.  

That’s what I was thinking. Do you think there’s a chance they’d settle for 50%? That’s the absolute maximum I could do.

Its not really applicable what we may think, the issue is if its a guarantor loan, they can go to them if you don`t pay what is owed, or they are unhappy with what you offer them, this is why you must be exceptionally careful how you handle this whole matter.

You can negotiate over the phone if you wish, or put it in writing, don`t expect a quick resolution though.

If you manage to come to an agreement, it is essential, that you get them to agree in writing, that what you are paying, will partially settle the debt, and under no circumstances will they, or their agents pursue you, or the guarantor, for the remainder of it, now or in the future, nor will they sell the remaining balance to any 3rd party, and the remainder of the debt will be written off.

I cannot stress how important it is to get that in writing, and if they refuse, don`t do a deal, walk away and keep up with your normal payments.

YourLad97

sourcrates said:

YourLad97 said:

MEM62 said:

If the lender has a guarantor on the hook they will be less likely to negotiate.  

That’s what I was thinking. Do you think there’s a chance they’d settle for 50%? That’s the absolute maximum I could do.

Its not really applicable what we may think, the issue is if its a guarantor loan, they can go to them if you don`t pay what is owed, or they are unhappy with what you offer them, this is why you must be exceptionally careful how you handle this whole matter.

You can negotiate over the phone if you wish, or put it in writing, don`t expect a quick resolution though.

If you manage to come to an agreement, it is essential, that you get them to agree in writing, that what you are paying, will partially settle the debt, and under no circumstances will they, or their agents pursue you, or the guarantor, for the remainder of it, now or in the future, nor will they sell the remaining balance to any 3rd party, and the remainder of the debt will be written off.

I cannot stress how important it is to get that in writing, and if they refuse, don`t do a deal, walk away and keep up with your normal payments.

Thank you. I will try and negotiate with them and if they get to to 50% then I’ll definitely go for it and I’ll get it all done in writing.

YourLad97

tigergambit said:

YourLad97 said:

Hello,

I’m getting towards the last quarter of my DMP journey and my sister has offered to help me pay it off if I can get a reduced rate.

I've phoned one of the creditors - Lantern. I have a guarantor loan with them which has £4,200 left. They’ve offered me only 25% off. I know my sister and I know she’ll help me only once I get it down to 60% with 50% being the minimum.

Do you think it’s realistic? I don’t want to get my hopes up.

Also I have one other loan with Tesco Bank - are they likely to also settle for that?

I don’t know if I’m asking a lot. These debts have all defaulted around 6 years ago.

Regarding TESCO, you can ask. I offered them 23% recently (they have no chanve of me ever paying the full amount) and they responded with 50% so there may be a chance there - best previously was 60%. I have found them very difficult regarding F&Fs, although they are willing to accept £1 per month forever.

I will hit them up on Monday as I’m off and I’ll see what they say… I’ll update it on here.

tigergambit

YourLad97 said:

tigergambit said:

YourLad97 said:

Hello,

I’m getting towards the last quarter of my DMP journey and my sister has offered to help me pay it off if I can get a reduced rate.

I've phoned one of the creditors - Lantern. I have a guarantor loan with them which has £4,200 left. They’ve offered me only 25% off. I know my sister and I know she’ll help me only once I get it down to 60% with 50% being the minimum.

Do you think it’s realistic? I don’t want to get my hopes up.

Also I have one other loan with Tesco Bank - are they likely to also settle for that?

I don’t know if I’m asking a lot. These debts have all defaulted around 6 years ago.

Regarding TESCO, you can ask. I offered them 23% recently (they have no chanve of me ever paying the full amount) and they responded with 50% so there may be a chance there - best previously was 60%. I have found them very difficult regarding F&Fs, although they are willing to accept £1 per month forever.

I will hit them up on Monday as I’m off and I’ll see what they say… I’ll update it on here.

Make sure to start low!