F & F Settlement - Advice Please

orpheus

Hi folks,

I have been in a DMP with Payplan for 3 years and all has gone fairly smoothly.

My Nan has just died and I have come into some unexpected cash. The amount is just over 50% of my outstanding debt. (25k)

I really need to spend about 3k on my house which has a dry rot problem I have been avoiding for the last 3 years so I could keep up with my DMP.

I now want to seek Full & Final settlements with my creditors. Some are are still with the original creditors and some have ben passed to DCA's. I have done a search on the forums and read all the stuff. My question was not answered.

Payplan have a settlement team who will do the negotiating etc for me, however, I have been told by someone who has gone through a similar situation to me that they will not get me the best deal? I am told that Payplan are bound by 'industry' guidelines that they have to be open and honest and tell all the creditors what I am paying each of them and share the total amount I have available etc etc.

Although I wish to make it clear that I am not avoiding my debts and this is my attempt to clear them, most of my debt is charges, fees etc and I shed no tears for my creditors.

So, have you any advice - experience about the best way to proceed?

Thanks - Orph

chevalier

I think that maybe the first thing to do is to ask for settlement figures for your debts, this would give you an idea as to what you owe now and what they want to settle the debt. It may be that you want to do the offering. That way you can be cheeky and offer a percentage way lower than maybe payplan can.

But I would also check with payplan to see what they say.
chev

averageguy11

Leave yurself room to negotiate thts all i wud say...and get everything in writing

Bunnyinthelights

I would negotiate alone and I have read *somewhere* that you should start at 35% and work from there. Let us know how you get on-I'm interested myself.

sallyjo_2

I have paid two of my debts off with full and finals. The first one was at about 80%, but the last one -in December- was about 25%. I am with CCCS and they made suggestions --eg along the lines of informing all what you are paying each and giving the same pro rata percentage -- but did not negotiate for me.

The original creditors weren't interested. However one of the companies who had bought the debt I settled with for under 25% of the original debt. Good deal!! Also, if at first they don't go for it, keep trying a couple more times and give them a deadline before you offer it elsewhere.

Most of these companies buy your debt for pennies on the pound and they can be bargained with. Likewise in my opinion the original debtors have already written off your debt, and are continuing to be obscenely profitable so I too don't have any problems with trying to settle with the best deal I can get.

Whilst I do take responsibility for the error of my ways with regard to being over-indebted, my debtors held my hand all the way to the debt hell I subsequently found myself in, so I don't feel bad either.

stapeley

HI be very careful ! When will money be available ? Put it in a separate account . I know CCCS have a guide on this subject email them and they will send back a step by step guide . The DCA,S will accept a small settlement figure but the OC will be harder . As you own your home they will want full settlement . Don,t forget the DCA have bought the debts off the OC because the OC probably did not have a true signed CCA . You could always keep money and carry on paying DMP as you are now .