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  • FIRST POST
    • HOUSER2280
    • By HOUSER2280 9th Apr 18, 12:21 AM
    • 3Posts
    • 0Thanks
    HOUSER2280
    Stupidly got in debt but trying my best to get out.
    • #1
    • 9th Apr 18, 12:21 AM
    Stupidly got in debt but trying my best to get out. 9th Apr 18 at 12:21 AM
    Hi all,
    After reading other people's experiences I finally thought I'd put my woes on here. I'm under 40 and 50k in debt. I've got nothing to show for it and basically it's all my own daft fault. I owe 40k to Tesco, 8k to Barclays and the rest to Hitachi. I took a massive step about 7 months ago and spoke to Stepchange. What a great organisation they are. They managed to get my silly payment each month reduced to 190 on a DMP and it's eased the burden massively.

    I've not told any family or friend about my situation as I'm too embarrassed so needed to come on here to share this with you guys and for support.

    I've got a mortgage which is not going too bad. Payments are going well and there shouldn't be an issues. I think I also have about 40k in equity which is an extra card I can play if things get tricky.

    Then today my heart sunk. Tesco have sold my debt on to 1st Credit who sent me a letter today saying they have changed their name to Intrum. I'm going to continue to pay my DMP i had with Tesco via Step change. The letter also lstated that if i payed off the debt this month they would write off 70% of the debt and my settlement figure would be 12300 and any default registered in relation to this account would be updated to 'partially satisfied'. The outstanding balance would show as zero on my credit file and I would not be pursued for the remainder of the balance my Intrum or any other third party. Can this happen and is this for real????

    Either way I don't have that kind of cash laying around sound couldn't do it anyway.

    Does anybody have any experience of this and what I could maybe do bearing in mind I've got equity in the house.

    Any advice or tips on any of this would be much much much appreciated and on any other ways or tips of getting out of debt quicker. It's my own fault I know and once out of debt it will never happen again.

    Thanks all look forward to your responses.
Page 1
    • louby40
    • By louby40 9th Apr 18, 9:26 AM
    • 1,353 Posts
    • 3,679 Thanks
    louby40
    • #2
    • 9th Apr 18, 9:26 AM
    • #2
    • 9th Apr 18, 9:26 AM
    Not sure about your question but just wanted to say hello and welcome.
    • jwil
    • By jwil 9th Apr 18, 1:55 PM
    • 8,503 Posts
    • 25,998 Thanks
    jwil
    • #3
    • 9th Apr 18, 1:55 PM
    • #3
    • 9th Apr 18, 1:55 PM
    It sounds like they've sent you a full and final settlement offer. (A very good one, if it's 70% off!!). It does happen and is very real.

    If you haven't got the money available, there's not a lot you can do about it. It's worth trying to save some money to clear it though, now you know they are willing to accept a low offer. I wouldn't like to advise on using your equity, it's not generally a good idea to turn unsecured debt into secured debt.

    There's a F&F settlement thread on here http://forums.moneysavingexpert.com/showthread.php?t=115430&utm_source=MSE_FS&utm_medi um=Email&utm_term=03-Apr-18 and also a DMP advice thread too which has loads of tips on clearing the debts quicker http://forums.moneysavingexpert.com/showthread.php?t=5623951&utm_source=MSE_FS&utm_med ium=Email&utm_term=27-Mar-18
    "If you can dream it, you can do it". Walt Disney
    • enthusiasticsaver
    • By enthusiasticsaver 9th Apr 18, 2:20 PM
    • 6,368 Posts
    • 13,012 Thanks
    enthusiasticsaver
    • #4
    • 9th Apr 18, 2:20 PM
    • #4
    • 9th Apr 18, 2:20 PM
    Yes sometimes either by you asking or creditors offering they will write off part of your debt via a full and final settlement. If while on your DMP you save any extra then every so often you could suggest a full and final offer. Not so easy when you have a large debt though with just a few creditors. 70% off is a great offer but presumably you don't have 12k laying around.

    I would not use your equity to borrow more and in fact it is against the terms of a DMP to do that anyway. Just keep on with the monthly payments and save as much as you can.
    Debt free and mortgage free and early retiree. Living the dream

    I'm a Board Guide on the Debt-Free Wannabe, Mortgages and Endowments, Banking and Budgeting boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Pease remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com
    • HOUSER2280
    • By HOUSER2280 11th Apr 18, 1:34 AM
    • 3 Posts
    • 0 Thanks
    HOUSER2280
    • #5
    • 11th Apr 18, 1:34 AM
    • #5
    • 11th Apr 18, 1:34 AM
    Hi guys and thank you. If i sold my house do I have to tell the creditors how much i made from the sale? Can info ahead then and offer F&F payments?
    • HOUSER2280
    • By HOUSER2280 11th Apr 18, 1:37 AM
    • 3 Posts
    • 0 Thanks
    HOUSER2280
    • #6
    • 11th Apr 18, 1:37 AM
    • #6
    • 11th Apr 18, 1:37 AM
    I wish in bad 12k laying around. I would be inn the phone right now. Just so frustrating that I could potentially write off 70% of the debt but can even think about it. Just makes you wonder how much 1st Credit bought the debt for.
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