Settlement offers

End_of_the_tunnel · 21 May 2018 at 12:23PM

I have used this site many times, following the advice offered to others. Thank you so much to all of those that dont judge, but offer great help.

We have a DMP with SC owing 24k to 28 debts, paying 350pm. All of the debts have been confirmed.
I have been signed off work and it is unlikely I will return within 6 months.
In October we will be receiving a lump sum of 15k
I was going to cancel SC and write to all debts offering a minimum payment of 60pm between them, this is all we can afford.
Should I also mention the lump sum and start the negotiations now, or wait until later?
Any advice on what to do would be very welcome.

January2015 · 21 May 2018 at 12:53PM

I wouldn't mention the lump sum - keep that as an offer for the future.

I would work you budget so that you can only pay them each £1 per month. They will accept it. Don't give them more than you need to and it will also help push them with a decision when you are in a position to put forward a settlement offer.

fermi · 21 May 2018 at 12:57PM

I agree. A bit premature to start mentioning it. Better to wait until you can actually use it, then you can say to creditor that if they don't accept a settlement they will lose out and it will used with those being more accommodating.

End_of_the_tunnel · 21 May 2018 at 1:04PM

Thank you both, I will do that. Will then start the F&F process later.

January 2015, you mention only paying £1 to each debt, why is this?

January2015 · 21 May 2018 at 1:54PM

End_of_the_tunnel wrote: »

Thank you both, I will do that. Will then start the F&F process later.

January 2015, you mention only paying £1 to each debt, why is this?

Whilst you are off sick money is bound to be tight. Don't push your budget so tight you struggle. It's just not worth it and creditors will understand your situation and support you. You could even propose no payments for six months, but most people feel that paying £1 shows commitment to the debts and feel better about it - although it actually costs creditors and DCAs more to process that the £1 they get.

Also if you are paying low payments of £1 the theory is that creditors will be more open to negotiate settlements.

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