Token

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Legacy_user
Legacy_user Posts: 0 Newbie
in Debt-free wannabe
Hi,
I am currently making token payments to my creditors and have been for around three months now. Little advice, what’s the longest you have paid token payments for?

Also, the majority have defaulted me already. How long til they pass my debt onto a dca? And when do you think I will be in a position to offer full and final settlements? As in the future, my parents are willing to give me an amount which is half of my debt and wanted to know if this would potentially be accepted?

Tia x

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  • fatbelly
    fatbelly Posts: 20,496 Forumite
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    Some people make token payments for years, though you have to question what the point of that is.

    How long before they pass the debt on? It can vary between soon and never.

    If F&F was the best strategy for you then I would say to stop payments and offer F&F in 6 months. 50% would be enough to play with. Again with no guarantee of success.

    But you do not have that money? As your credit record is already trashed, would a DRO or bankruptcy not cost your parents less?

    How much debt are we talking about?
  • System
    System Posts: 178,094 Community Admin
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    Hi, thanks for your comment. So continue token payments for another six months then offer a F&F?

    My debt total is around £6700.

    Thanks x
  • System
    System Posts: 178,094 Community Admin
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    I already spoke to one of my creditors, and they are willing to settle a £3700 balance for £1800. So after that technically it would leave me a debt total of roughly £3000 to then offer £1200 to settle the others.

    Tia x
  • fatbelly
    fatbelly Posts: 20,496 Forumite
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    Token payments might actually slow the process down. If you genuinely have no surplus income, I'd stop paying.

    So £6700 debt potentially settled with £3000 gift from your parents, if you can get the tiddlers ( a lot of payday lenders I think) to agree.

    It's your decision but if it's an option and you meet the other criteria, I'd consider asking them to set aside £2910 somewhere as an emergency fund for me, and pay my £90 DRO fee.

    Clean break & start again.
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