Cccs Dmp

CCCS_Matthew

Hi again,

Whereabouts did you find the online calculator?

This is the way we suggest working out how to work out the calculations:


How to Work out Full & Final Offers

Payment to Creditor = Total Sum Available ÷ Total Owing to all Creditors x Debt to that Individual Creditor
(I.e. Offer to each Creditor Equals the Total Lump Sum Available divided by the Total owing to all Creditors multiplied by the Amount owed to that Creditor)

Example
If you owed a total of £24,000 between four creditors and have a lump sum of £16,000 to offer and:
You Owe
£12,000 to Credit Card A
£6,000 to Credit Card B
£3,300 to Bank C
£2,700 to Bank D

Using the above Formula
Payment to Creditor = Total Sum Available ÷ Total Owing to all Creditors x Debt to that Individual Creditor

(e.g. Offer to Credit Card A = 16,000 ÷ 24,000 x 12,000 = £8,000 rounding to the answer to the nearest £)
This is the amount you offer to Credit Card A.
You then use the same calculation for each creditor in turn.

Offers to Creditors Based on a Full & Final Settlement of £16,000

Creditor Debt Offer
Credit Card A £12,000 £8,000
Credit Card B £6,000 £4,000
Bank C £3,300 £2,200
Bank D £2,700 £1,800
____________________________________________
Total £24,000 £16,000

Make a table of offers like the one above and send a copy to each creditor with your offer letter (see attached) to demonstrate that they are being treated equally.

If some creditors refuse then write again and ask them to reconsider, mentioning other creditors that have accepted.

Hope that's useful
CCCS

Broken_hearted

I would go in with the offer of 50% each and see where you go from there. CCCS will want you to offer all the money you have.

CCCS_Matthew

Broken_hearted wrote: »

I would go in with the offer of 50% each and see where you go from there. CCCS will want you to offer all the money you have.

That advice we would give is to start low and work your way up.

Broken_hearted

The advice you normaly give is go bankrupt utterly uselesss.

Jindebt

i have just called cccs and am now awaiting the settlement pack to come in the post!

is it best to write to my creditors to ask what they will accept? or should i write to them with a starting figure? i know i should just wait till pack arrives but im keen to get everything moving asap!!

10past6

Jindebt wrote: »

is it best to write to my creditors to ask what they will accept?

No, creditors seldom accept an offer.

Jindebt wrote: »

or should i write to them with a starting figure?

Send them this letter, including a £1.00 postal order to each creditor, until your DMP is set up.

Your address
Date
Creditor / DCA address

Dear Sir/Madam

Re:− Account/Reference Number: XXXXXXXXXXXXXXXXX

We are writing to inform you that we are seeking advice and assistance via {Insert debt charity name} regarding our current financial difficulties.

To this end, we would appreciate if you could hold any action on the above account for a period of at least 28 days.

Also, during this period, could you please freeze interest and/or any other charges accruing on the above account.

We look forward to hearing from you as soon as possible.

Yours faithfully

CCCS_Matthew

Hi Jindebt,

I wouldn't ask the creditors at this stage what they are willing to accept, as you may end up shooting yourself in the foot. Wait until you get the pack through and use the template letters to initiate your first offer. As I mentioned earlier if it's low and get's knocked back, work your way up to a level that they eventually accept.

Hope this helps and good luck
CCCS

Jindebt

sorry im already on a DMP have been since january

i have just found a letter online i am going to post up some figures can you lot help we with my offer amounts?

right here is what i owe!
Creditor NameAccount Number Estimated Balance
BARCLAYS BANK PLC 1010.17
CL FINANCE 293.55
HFC BANK LIMITED 3382.40
LLOYDS TSB CARDSERVICES (B) 1094.05

I have £5000 available which using the CCCS calcualtor works out that i should offer:

LLOYDS TSB CARDSERVICES (B)= £946.38
CL FINANCE= £253.93
BARCLAYS BANK PLC= £873.82
HFC BANK LIMITED= £2,925.87
Total= £5,000.00

does this sound about right? i am typing out all my letters now to this working.

WITHOUT PREJUDICE:

Dear Sir/Madam
Re: Barclays Account Number

We write with reference to the money which you are claming on the above account.
We can confirm that we are unable to offer to pay the money, which we owe in full. .
However, I can raise £**** and I want to offer this an ex-gratia payment in full and final settlement of the
account. This offer is made on the clear understanding that, if accepted, neither you nor any associate
company will take any other action to enforce or pursue this debt in any way whatsoever and that we will be
released for any liability.
We also request that, if accepted, you will make an entry on a credit reference agency file relating to the above
account as "satisfied" in full.
Payment can be made within 1 week of receiving your written agreement of this offer and method of
payment.
We look forward to receiving your reply.
Yours faithfully

any help would be great!

Jindebt

as im not busy at work im going to try and get these off today if possible. is there a thread with all bank / creditors addresses? i cant find it, but im sure ive seen one before

Jindebt

Are offers of 60% really accepted at times?