after some advice - DMP and Settlements

craftfairy · 14 May 2018 at 3:12PM

I have been on a DMP for 5 years and all was well although I didn’t have a huge amount free I have been paying every month.
I have recently found out I’m being made redundant and have been offered some of my hours to continue if I go self-employed and freelance
I have also split with my ex-partner and so am facing this on a single income with no one to fall back on which is adding to my stress a little along with the fact I will be self employed with little security….anyway….
I did a review of my DMP and my payments are going to decrease by £54 a month as I will be taking home much less but have made more cuts as many as I can.
They are continuing with my DMP but have also suggested an IVA but I don’t know if I like the feel of it although it would leave me debt free sooner
I also know that in a couple of years I will want to get a mortgage and am trying to find out how the DMP is currently effecting my credit rating as my defaults were back in 2013 so I think these will come off in 2019 but I don’t know if being on the DMP will continue to affect me
I had a read and I see some people have offered settlement amounts much lower than that owed and paid off their debts, I will get a little bit of redundancy money which I thought I may be able to use to clear a couple of creditors but I’m not sure how you go about this and what to offer – has anyone had any experience of this?
I feel very much like I am sinking with all this coupled with the redundancy at the moment and could do with hearing some peoples experiences of trying to pay off debts early like this, I know I won’t be able to pay off them all but some may help right?
I’m currently writing to get my address changed with creditors and get up to date statements so I can see what the current balances are as I left my partner and he has been destroying my post so it’s a little more difficult that it should be

craftfairy · 14 May 2018 at 3:37PM

Sorry to add
I have read a few posts about requesting CCA's, is this something i should be doing as most of my debts have been passed on now - is there a template letter for this anywhere?
Thanks in advance

sourcrates · 14 May 2018 at 4:01PM

craftfairy wrote: »

I have been on a DMP for 5 years and all was well although I didn’t have a huge amount free I have been paying every month.
I have recently found out I’m being made redundant and have been offered some of my hours to continue if I go self-employed and freelance
I have also split with my ex-partner and so am facing this on a single income with no one to fall back on which is adding to my stress a little along with the fact I will be self employed with little security….anyway….
I did a review of my DMP and my payments are going to decrease by £54 a month as I will be taking home much less but have made more cuts as many as I can.
They are continuing with my DMP but have also suggested an IVA but I don’t know if I like the feel of it although it would leave me debt free sooner
I also know that in a couple of years I will want to get a mortgage and am trying to find out how the DMP is currently effecting my credit rating as my defaults were back in 2013 so I think these will come off in 2019 but I don’t know if being on the DMP will continue to affect me
I had a read and I see some people have offered settlement amounts much lower than that owed and paid off their debts, I will get a little bit of redundancy money which I thought I may be able to use to clear a couple of creditors but I’m not sure how you go about this and what to offer – has anyone had any experience of this?
I feel very much like I am sinking with all this coupled with the redundancy at the moment and could do with hearing some peoples experiences of trying to pay off debts early like this, I know I won’t be able to pay off them all but some may help right?
I’m currently writing to get my address changed with creditors and get up to date statements so I can see what the current balances are as I left my partner and he has been destroying my post so it’s a little more difficult that it should be

craftfairy wrote: »

Sorry to add
I have read a few posts about requesting CCA's, is this something i should be doing as most of my debts have been passed on now - is there a template letter for this anywhere?
Thanks in advance

Hi,

Yes making settlement offers, especially on older debts, can be a good way to go, it really depends on a lot of factors as to how much discount you can get, between 20 and 50% is about the norn, sometimes more.

Always start low, then you have room to negotiate, remember just because one offer may be rejected, do not let it put you off sending another, higher one.

You should make all offers in writing using this template letter :

https://www.nationaldebtline.org/EW/sampleletters/Pages/Full-and-final-settlement-offers-%28sole-name%29.aspx

Before you do any of that, it is considered best practice to CCA all relevant accounts first, just to be sure they all have compliant paperwork.

CCA template letter, and more information, can be found here :

https://www.nationaldebtline.org/EW/sampleletters/Pages/Information-about-your-agreement-under-the-Consumer-Credit-Act-%28sole-name%29.aspx

National_Debtline · 14 May 2018 at 4:32PM

Hi craftfairy

To elaborate on what sourcrates has said above:

If these companies are unable to supply CCA paperwork as requested, it gives you more leverage if/when trying to negotiate any F & F settlements. If the debts cannot be enforced through the courts, the creditors involved may be willing to settle on very low figures - even significantly lower than the 20% mark suggested above.

On a separate note, once the defaults in question expire in 2019, all remaining traces of the debts should disappear with them at the same time.

You mention wanting to get a mortgage in the next couple of years - you should certainly rule out an IVA then, come what may, as that would only help prolong the time that adverse data was visible on your credit report.

Dennis
@natdebtline

after some advice - DMP and Settlements

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