Can I make 2019 my debt-free year?

InDebted2U_2 · 11 January 2019 at 4:30PM

Hi there. I've been on a dmp for over ten years now, gradually chipping away at a large debt (over £30K), that was the legacy of a bad relationship. I desperately want to be debt-free so I can move on with my life. I feel trapped by my debts and the way I feel I have no options open to me, particularly with regard to getting a mortgage.

My life has changed considerably in these ten years, and I have long been financially 'stable', just living under this dmp cloud, and I only cope with it by 'ignoring' it (ie. making my interest-free dmp payments and avoiding the telephone). I am now in a position where I can raise enough funds to pay off approximately half of the remaining debt (with thanks to family/friends), but I am afraid to approach debt agencies in case they ask difficult questions, turn me down, start expecting higher payments or adding interest. All but one of my original four debts now belong to the same debt agency, who have just written to offer me a 25% discount off one of the debts they now hold. The company holding the fourth debt wrote to me a short while back and offered me to close my debt with a 20% discount. These discounts are not enough given the funds available to me, and I need 35-40% off to be close to clearing these debts. Is it possible, given what they have offered me so far, that this might be acceptable? Why did the agency with three debts only write and offer a discount on one of those?

I'd dearly love some advice as to what to do next, to get things moving forwards. I have put tackling this off for a long time, as I feel so low, and even this first step is terrifying. I really need to move on from this debt prison and start living again.

Willing2Learn · 11 January 2019 at 4:48PM

Hi,

If you are thinking about making F&F settlement offers then I suggest making a written CCA request for each debt first. This will ensure that your creditors have the correct paperwork and determine whether the accounts are enforceable or not.

Edit: And while I am here - Well done on maintaining your DMP for all this time!

sourcrates · 11 January 2019 at 5:04PM

Agree with the above, send CCA requests to all relevant accounts first, basically if they cant get hold of compliant paperwork, the debt cannot be enforced through the courts.

This benefits you twofold, you can just walk away and pay nothing, the debt will eventually fall off your credit file and become statute barred, or you can use lack of compliant paperwork as leverage to obtain the best possible discount.

Who are the debt purchasers involved, do they have permission to trade, are they on the FCA register ?

Did you receive compliant default notices ?

Once a debt defaults no further interest or charges can be applied to that account, so making settlement offers will not be detrimental to you in any way.
Negotiations should be treated like a military operation, gather intelligence, assess your enemy, use cunning, bluff, and any other method at your disposal to get them to agree in writing to the offer that you want them to accept.

And its not terrifying, in fact it can be quite a lot of fun, and dosent hurt to have a little laugh with them along the way either.

Willing2Learn · 11 January 2019 at 5:27PM

sourcrates wrote: »

Negotiations should be treated like a military operation, gather intelligence, assess your enemy, use cunning, bluff, and any other method at your disposal to get them to agree in writing to the offer that you want them to accept.

Lol - That made me laugh

InDebted2U_2 · 11 January 2019 at 5:52PM

Thank you for responding.

I have just looked both companies up on FCA and both seem legit. I don't know if I received compliant default notices - how would I find out? What's a CCA?

Everything to do with debts is scary :eek: and I've been under the weight of it for a long time. My dmp company has sent threats at times that they will discontinue my dmp or that I must do something by such-and-such a date or something bad will happen, and I only cope by ignoring them and just keeping on paying my low amount. I recently discovered that I have roughly halved my debt during the dmp, which means there may be light at the end of the tunnel regarding a final settlement. I just don't know how to go about it.

NeverendingDMP · 11 January 2019 at 6:24PM

Are you paying the dmp company or do they take a % of what you pay. If so do you feel up to ditching them as that will save you money.

InDebted2U_2 · 11 January 2019 at 6:38PM

NeverendingDMP wrote: »

Are you paying the dmp company or do they take a % of what you pay. If so do you feel up to ditching them as that will save you money.

They are distributing my payments to my creditors and not taking payment for themselves.

sourcrates · 11 January 2019 at 6:58PM

InDebted2U wrote: »

Everything to do with debts is scary :eek: and I've been under the weight of it for a long time. My dmp company has sent threats at times that they will discontinue my dmp or that I must do something by such-and-such a date or something bad will happen, and I only cope by ignoring them and just keeping on paying my low amount. I recently discovered that I have roughly halved my debt during the dmp, which means there may be light at the end of the tunnel regarding a final settlement. I just don't know how to go about it.

I used to think that way, I suspect everyone does, its the fear of the unknown that's all, once your over that, things become a lot clearer.

You refer to your DMP company, who are they ? i`m suspecting your paying them for this service, am i right ?

Free DMP`s are available, and i suggest you cut that cord straight away.

Try to relax, you have come to the right place for the advice you need, making settlement offers to creditors can be a long, and time consuming business, but it has to be that way as typical creditor response time can be around 6 weeks.

As with most things in life there is a correct way to do this, and an incorrect way, i want you to follow the correct way, i`ll try and list the process in step order :

(1) Send CCA request to your creditors, applies to all accounts governed by the consumer credit act except mobile phone accounts.
Link here to information and template letter :

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

(2) Once you have the results of the CCA requests, if you want to make offers to creditors, use this template letter found here :

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

So first step is CCA requests, get them sent and let us know what the response is, be aware, this part can take a good few months to action, during which time your accounts will be temporarily unenforceable, so you don`t have to pay them until they respond with compliant paperwork.

Good luck, think of it as an adventure.

NeverendingDMP · 11 January 2019 at 7:01PM

Thats good. I agree CCA requests first.
I think long term you will be able to get more of a discount than youve been offered so far. Hope so and good luck

DannyPearce90 · 11 January 2019 at 7:42PM

I do not understand why you are in a DMP? You could have made a formal arrangement and been out of this 5 years ago. Sometimes the advice of self help forums do not help at all!

You should not be living with this stress, get professional representation.

sourcrates · 11 January 2019 at 7:48PM

DannyPearce90 wrote: »

I do not understand why you are in a DMP? You could have made a formal arrangement and been out of this 5 years ago. Sometimes the advice of self help forums do not help at all!

You should not be living with this stress, get professional representation.

It’s a good point, maybe the OP can answer this ?

Can I make 2019 my debt-free year?

Comments

Categories

Get our FREE Weekly email full of deals & guides - and it’s spam-free