Full and final settlement offer

fluffydog128

https://forums.moneysavingexpert.com/discussion/comment/82163367#Comment_82163367

If we settle for 25-30k we would be leaving ourselves in a much better position. We’d have enough for emergency fund and to keep back some towards a deposit in the coming years, perhaps 3/4 years time which is when my defaults should be beginning to drop off.

We just have been so unlucky with cars and minimum wage jobs early on that we got ourselves into a situation we didn’t see a way out of. StepChange didn’t suggest the sale however, the house was in need of some updating, damp proofing and it would need far more spending on it that we could afford. We’ve moved into a private rental property of somebody we know, the rent cost is similar to mortgage cost so it’s a quite secure set up for the next few years.

fatbelly

https://forums.moneysavingexpert.com/discussion/comment/82163343#Comment_82163343

That's a yes to getting the car sorted out. Ask on the motoring board if you need help.

And it's a no to telling the creditors the full info of what you have and what you are doing.

Isthisforreal99

https://forums.moneysavingexpert.com/discussion/comment/82163395#Comment_82163395

"Rent cost similar to mortgagr cost" - are you meaning your old mortgage cost? If so, there is bad news for your home owning aspirations with the average 5 year fix now around 6%. With adverse credit you could add another 2% on top of that.

fluffydog128

Rent cost is currently similar to the cost of our previous mortgage. I am under no illusion that this is a short period and I’m fully aware that I’ll need to get my credit score into a better position before applying for another mortgage. I am trying to be proactive with planning and avoid similar issues arising as to what caused us to fall into financial hardship in the first place.

fluffydog128

Ok, thank you. So I should go to settle with them individually and not involve stepchange but can withhold how much money we have available. The creditors so far that have got back to me have either refused and said no discount is available or asked for bank statements which I for obvious reasons don’t want to provide.

RAS

https://forums.moneysavingexpert.com/discussion/comment/82163447#Comment_82163447

Based on the new information, you need to get that money into the best 1 year fix that you can now, as you'll need a year for the recent communications to disappear of the radar before any further communications.

Hold enough back to replace the car and have an accessible fund to cover a replacement for that if disaster strikes, or for a deposit and a month's rent in advance if you need to move.

Then look at your Statement of Affairs (budget) based on family income during your mat leave. And make sure you have money in that for car repairs, childcare if needed etc. If you want to share, please do. It's more likely you are not saving monthly for occasional essentials than being extravagant.

Save monthly allowances for things like car repairs and holidays into an accessible monthly fund.

sourcrates

You appear to be running at 110%, you need to slow down, and think this through very carefully.

Nothing you can do will currently improve your credit report, until those defaults drop off at the 6 year point, a mortgage will be out of reach until then, one at an reasonable rate any how.

Congratulations, you are now in the most wonderful of positions, you have the ability to settle your debts for as little as possible, keep in mind, Lowell and the rest will have paid around 10% of the face value when purchasing your accounts, so anything they make over that is profit for them.

Of course they don`t want you to know what they paid, but around 10% is industry standard.

Its most important you don`t rush into this, as Martin often stipulates, "debt settlement can be more of a marathon, than a sprint".

The idea is for you to be able to keep the majority of this money for your essential needs, and to give away as little of it as possible, so to that end, the first thing would be to CCA all relevant accounts, find out what is enforceable, and what is not, once you have that information, then you can start thinking about making offers.

Oh, and this is something you must do yourself, Stepchange are very good in some respects, but as they are creditor funded, their "modus operandi" is to treat all creditors equally, so there would be little in the way of negotiation, your money would be gone and that would be that.

fatbelly

https://forums.moneysavingexpert.com/discussion/comment/82163472#Comment_82163472

IIt sounds like you've gone too early in the process. You need to be dealing with a company who has bought the debt for 10p in the £ or one that is considering selling for that sort of figure

fluffydog128

https://forums.moneysavingexpert.com/discussion/comment/82163644#Comment_82163644

When would this usually happen? I know majority have been passed onto debt collection agencies but a couple like lendable have not. Is it best to not even attempt to settle yet then and just carry on as we are for time being?

Grumpelstiltskin

As sourcrates and fatbelly have told you you are trying to rush into paying, that is wrong, slow down, you won't make the debts disappear any quicker and you could be throwing money away that you want to be in your pocket not your creditors.