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  • FIRST POST
    • InDebted2U
    • By InDebted2U 11th Jan 19, 3:30 PM
    • 334Posts
    • 236Thanks
    InDebted2U
    Can I make 2019 my debt-free year?
    • #1
    • 11th Jan 19, 3:30 PM
    Can I make 2019 my debt-free year? 11th Jan 19 at 3:30 PM
    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.
    2019 Targets
    run 500 miles (21.5/500)
    lose 50 lbs (0/50)
    clear all debts...


Page 1
    • Willing2Learn
    • By Willing2Learn 11th Jan 19, 3:48 PM
    • 2,534 Posts
    • 2,085 Thanks
    Willing2Learn
    • #2
    • 11th Jan 19, 3:48 PM
    • #2
    • 11th Jan 19, 3:48 PM
    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!
    I work within the voluntary sector, supporting vulnerable people to rebuild their lives.

    I love my job

    • sourcrates
    • By sourcrates 11th Jan 19, 4:04 PM
    • 16,699 Posts
    • 15,775 Thanks
    sourcrates
    • #3
    • 11th Jan 19, 4:04 PM
    • #3
    • 11th Jan 19, 4:04 PM
    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.
    Last edited by sourcrates; 11-01-2019 at 4:11 PM.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    Bankruptcy And Living With It, boards. "I volunteer to help get your forum questions answered and keep the forum running smoothly".

    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
    • Willing2Learn
    • By Willing2Learn 11th Jan 19, 4:27 PM
    • 2,534 Posts
    • 2,085 Thanks
    Willing2Learn
    • #4
    • 11th Jan 19, 4:27 PM
    • #4
    • 11th Jan 19, 4:27 PM
    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.
    Originally posted by sourcrates
    Lol - That made me laugh
    I work within the voluntary sector, supporting vulnerable people to rebuild their lives.

    I love my job

    • InDebted2U
    • By InDebted2U 11th Jan 19, 4:52 PM
    • 334 Posts
    • 236 Thanks
    InDebted2U
    • #5
    • 11th Jan 19, 4:52 PM
    • #5
    • 11th Jan 19, 4:52 PM
    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 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.
    2019 Targets
    run 500 miles (21.5/500)
    lose 50 lbs (0/50)
    clear all debts...


    • NeverendingDMP
    • By NeverendingDMP 11th Jan 19, 5:24 PM
    • 275 Posts
    • 1,088 Thanks
    NeverendingDMP
    • #6
    • 11th Jan 19, 5:24 PM
    • #6
    • 11th Jan 19, 5:24 PM
    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.
    35,213 - Jan 2018, 30748 remaining.
    Mortgage 77230- Jan 2018
    74137 remaining.
    Emergency fund 156
    Make 2019- 359.17/2019
    1% challenge. Back to 1%....
    • InDebted2U
    • By InDebted2U 11th Jan 19, 5:38 PM
    • 334 Posts
    • 236 Thanks
    InDebted2U
    • #7
    • 11th Jan 19, 5:38 PM
    • #7
    • 11th Jan 19, 5:38 PM
    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.
    Originally posted by NeverendingDMP

    They are distributing my payments to my creditors and not taking payment for themselves.
    2019 Targets
    run 500 miles (21.5/500)
    lose 50 lbs (0/50)
    clear all debts...


    • sourcrates
    • By sourcrates 11th Jan 19, 5:58 PM
    • 16,699 Posts
    • 15,775 Thanks
    sourcrates
    • #8
    • 11th Jan 19, 5:58 PM
    • #8
    • 11th Jan 19, 5:58 PM

    Everything to do with debts is scary 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.
    Originally posted by InDebted2U

    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.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    Bankruptcy And Living With It, boards. "I volunteer to help get your forum questions answered and keep the forum running smoothly".

    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
    • NeverendingDMP
    • By NeverendingDMP 11th Jan 19, 6:01 PM
    • 275 Posts
    • 1,088 Thanks
    NeverendingDMP
    • #9
    • 11th Jan 19, 6:01 PM
    • #9
    • 11th Jan 19, 6:01 PM
    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
    35,213 - Jan 2018, 30748 remaining.
    Mortgage 77230- Jan 2018
    74137 remaining.
    Emergency fund 156
    Make 2019- 359.17/2019
    1% challenge. Back to 1%....
    • DannyPearce90
    • By DannyPearce90 11th Jan 19, 6:42 PM
    • 63 Posts
    • 19 Thanks
    DannyPearce90
    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
    • By sourcrates 11th Jan 19, 6:48 PM
    • 16,699 Posts
    • 15,775 Thanks
    sourcrates
    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.
    Originally posted by DannyPearce90
    Itís a good point, maybe the OP can answer this ?
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    Bankruptcy And Living With It, boards. "I volunteer to help get your forum questions answered and keep the forum running smoothly".

    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
    • InDebted2U
    • By InDebted2U 13th Jan 19, 5:28 PM
    • 334 Posts
    • 236 Thanks
    InDebted2U
    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.
    Originally posted by sourcrates
    Thanks sourcrates. Reading the first link, it says "I enclose a payment of £1". Does this mean I need to write/include a cheque for £1? I have three debts in one place now, do they need separate letters? Do they usually repond in the given 12 days or can I expect to wait longer?


    As for the arrangment mentioned by someone else, this means nothing to me. My dmp company is not, and has never, charged me for their service.
    2019 Targets
    run 500 miles (21.5/500)
    lose 50 lbs (0/50)
    clear all debts...


    • sourcrates
    • By sourcrates 13th Jan 19, 5:52 PM
    • 16,699 Posts
    • 15,775 Thanks
    sourcrates
    Thanks sourcrates. Reading the first link, it says "I enclose a payment of £1". Does this mean I need to write/include a cheque for £1? I have three debts in one place now, do they need separate letters? Do they usually repond in the given 12 days or can I expect to wait longer?


    As for the arrangment mentioned by someone else, this means nothing to me. My dmp company is not, and has never, charged me for their service.
    Originally posted by InDebted2U

    That`s fine, is it stepchange or payplan ?


    A lot of folk tend to not do there homework before sighing up to these plans and opt for a fee charging debt management company, when the debt charities will do one for free, obviously we don't recommend paying for a service you can get for free.


    I think DannyPearce90 was wondering why you didn't choose insolvency, such as an IVA or a DRO, over a DMP, which would of been over years ago, I guess you have your reasons.


    If you still have a cheque book, its a £1 statutory fee for each account, you can include multiple accounts in one letter to the same lender, make it idiot proof that you are requesting agreements for more than one account.


    The 14 days are just guidelines sadly, the response you will get varies between creditors, some may acknowledge your request and say the account is on hold until its been actioned, some may just ignore you, in which case a reminder should be sent after a month.


    To actually fulfill the request can take many months sometimes, so don`t expect this to be a quick process, the thing in your favor is once you send those letters, the accounts concerned will become (temporarily) unenforceable in court, until you get what you've asked for, however long that may be.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    Bankruptcy And Living With It, boards. "I volunteer to help get your forum questions answered and keep the forum running smoothly".

    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
    • InDebted2U
    • By InDebted2U 13th Jan 19, 6:05 PM
    • 334 Posts
    • 236 Thanks
    InDebted2U
    That`s fine, is it stepchange or payplan ?


    A lot of folk tend to not do there homework before sighing up to these plans and opt for a fee charging debt management company, when the debt charities will do one for free, obviously we don't recommend paying for a service you can get for free.


    I think DannyPearce90 was wondering why you didn't choose insolvency, such as an IVA or a DRO, over a DMP, which would of been over years ago, I guess you have your reasons.


    If you still have a cheque book, its a £1 statutory fee for each account, you can include multiple accounts in one letter to the same lender, make it idiot proof that you are requesting agreements for more than one account.


    The 14 days are just guidelines sadly, the response you will get varies between creditors, some may acknowledge your request and say the account is on hold until its been actioned, some may just ignore you, in which case a reminder should be sent after a month.


    To actually fulfill the request can take many months sometimes, so don`t expect this to be a quick process, the thing in your favor is once you send those letters, the accounts concerned will become (temporarily) unenforceable in court, until you get what you've asked for, however long that may be.
    Originally posted by sourcrates
    Yes, the latter. My understanding was I couldn't have an IVA as a joint home-owner. I don't know what a DRO is.


    What is the advantage in doing the CCAs rather than just getting on and making final settlement offers? I really want this to be over.
    2019 Targets
    run 500 miles (21.5/500)
    lose 50 lbs (0/50)
    clear all debts...


    • sourcrates
    • By sourcrates 13th Jan 19, 6:53 PM
    • 16,699 Posts
    • 15,775 Thanks
    sourcrates
    As already stated, non compliant or no paperwork means a debt will be unenforceable in court, so this means you can just walk away and pay nothing, or it greatly increases your chances of a lower settlement deal than they would normally agree too, this route has been highly successful for many people.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    Bankruptcy And Living With It, boards. "I volunteer to help get your forum questions answered and keep the forum running smoothly".

    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
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