F+F offers not as easy as hoped.

Carrot007 · 20 June 2018 at 10:52PM

Thisname wrote: »

I believe they have frozen interest. It’s such a difficult situation and my stress levels have been high since I started the dmp but it was the only option I had at the time. I don’t have any assets.
So what happens with an in house dca? What do they do differently to the creditor and would they accept a lower settlement?

Yeah it is stressful. I did no better when I started my DMP in 2009/2010. And the advice I give is more what I wish I had done than what I did!

An in house dca just means nothing really. I think some companies just use an "in house dca" when they have decided that the account is terminated and you wont get the account back after you have paid. So no only an external dca will usually except a lower payment. And to add confusion some companies use external dca's without selling on, in which case it's the same as in house really and will not accept a low payment. When they sell on they would perobably sell on at 10% or lower (no they won't ask you!) which is why they will accept a low offer as they are still making a profit.

Have they defaulted you? (this is a good thing)

Thisname · 21 June 2018 at 7:46AM

So I guess the ideal outcome for me is for it to go to an external collector as I have a lump sum available to me to neigotiaye with but that it might take quite a long time for it to reach that stage?

I guess I just play the waiting game and just keep plodding on with my dmp.

Suseka97 · 21 June 2018 at 3:54PM

I think you're right, just carry on as you are for now and hopefully some, of not all, will get sold on/transferred to a DCA. 8 months is no time in terms of arrears, and F&Fs are generally best achieved (as others have said) a good deal further down the line.

Thisname · 26 June 2018 at 1:21PM

I just wanted to update and give some more details about my situation and hopefully get some feedback.

My mum died in April, it has been a terribly stressful time and she left me £10k in life insurance which I told her I wanted to use to clear debts. The debt is 12k but I don’t want to give them all of the money because it would leave me with no savings or buffer for emergencies. I may need a new car in the not too distant future as my current one is getting old and repair bills are mounting up.

So, do you think it is right for me to keep the money in savings and try to settle further down the line at a point where they might settle the debt for quite a bit less or should I be just paying them back most or all of it?

Any thoughts on this situation as I am desperate to be debt free but don’t want to screw up and leave myself in trouble. Ideally I would like to clear the debt and have a few grand left over as a buffer to help rebuild.

Thanks

tlc678910 · 30 June 2018 at 1:54AM

Hi,
I'm sorry for your loss. Don't rush into doing anything with your money while you are upset and emotional - take your time.
I think you said you are on a payment plan with Step change. If your creditors have frozen the interest on your debts so you are paying back only the amounts you already owe and no interest why not just continue to pay step change monthly and keep your lump sum for emergencies and to help you through while on your payment plan. If you are worried you could fritter the lump sum, and having spent it, still be left with your debts this might not be the best approach for you.
Tlc

F+F offers not as easy as hoped.

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