Advice about debt clearance figure

ch958 · 02/07/14 - 12:59

i was unemployed a few years ago and had a debt with a bank which is now being collected by a debt company/solicitors

theres a charging order on my house and i'm paying 15 a month

the total owed was 9k now 11k due to interest/fees, etc

i may be able to pay some of it off - what do people think they might accept as a settlement figure - another company i owed 8k to asked for 2500 for immediate settlement which i did

don't reply if you're going to say pay it all off - i can't do that

i was thnking about 4500 maybe

anyone got any experiences in this area

screammyname · 02/07/14 - 13:02

I'd say that offer is a fair offer. What have you got to lose?

chenks · 02/07/14 - 13:07

screammyname wrote: »

I'd say that offer is a fair offer. What have you got to lose?

4500 out of 11k owed is rather one sided in terms of fairness.
the only answer here is that you'll need to contact them and ask them.

PaulS67 · 02/07/14 - 13:15

Check it out on a debt forum before making any offers of payment

I was under the impression that if you cant pay a debt and you get a low payment agreement with them then the interest stops being added, otherwise as you see the amount of debt grows very quickly

get some professional help/guidance before doing anything would be my advice

If you do want to speak to them, do it by letter, keep copies of everything, do not just phone them

ch958 · 02/07/14 - 13:18

chenks wrote: »

4500 out of 11k owed is rather one sided in terms of fairness.
the only answer here is that you'll need to contact them and ask them.

FAIRNESS?

we're talking about a bank and i didn't ask to be unemplyed

but yes i will contact them but i was wondering if anyone else had done something similar before i do

chenks · 02/07/14 - 13:27

ch958 wrote: »

FAIRNESS?

we're talking about a bank and i didn't ask to be unemplyed

i didn't say anything about you being unemployed (you only mentioned it for the first time there).
i merely stated that if you owed 11k and wanted to settle at 4,.5k then fairness is one-sided in that situation. they would be doing YOU a favour by settling at the lower amount.

a fair offer in my eyes would be if they agreed to knock off the interest leaving you only to re-pay the actual original debt.

they could easily say no, we want the full 11k and have you paying monthly for the rest of your life.

ch958 · 02/07/14 - 14:05

chenks wrote: »

i didn't say anything about you being unemployed (you only mentioned it for the first time there).
i merely stated that if you owed 11k and wanted to settle at 4,.5k then fairness is one-sided in that situation. they would be doing YOU a favour by settling at the lower amount.

a fair offer in my eyes would be if they agreed to knock off the interest leaving you only to re-pay the actual original debt.

they could easily say no, we want the full 11k and have you paying monthly for the rest of your life.

yes i was unemployed which is how the debt accrued

if they say no they get 175 per annum til i die - maybe 15 years at my age = about 2.5k in round figures
or 4/5 k now - thats how i'm looking at it

i could be doing THEM a favour!

chenks · 02/07/14 - 14:17

ch958 wrote: »

yes i was unemployed which is how the debt accrued

if they say no they get 175 per annum til i die - maybe 15 years at my age = about 2.5k in round figures
or 4/5 k now - thats how i'm looking at it

i could be doing THEM a favour!

that suggest you can probably afford more than £15pm then?
why not increase your monthly re-payments.

abs2512 · 02/07/14 - 17:01

I may be wrong but I thought if you offer a settlement figure to the bank and they accept, the remainder of the debt will be written off by the bank, BUT the debt itself will still show on your credit history as an unpaid debt. As I say, I may be wrong, but it's worth checking these things.

gemma-the-husky · 02/07/14 - 17:17

Make them the offer. They have probably got a bad debt provision for the whole amount, so as far as their books go, they will show your payment as all profit.

They may well say yes.

[Deleted User] · 02/07/14 - 19:11

ch958 wrote: »

yes i was unemployed which is how the debt accrued

if they say no they get 175 per annum til i die - maybe 15 years at my age = about 2.5k in round figures
or 4/5 k now - thats how i'm looking at it

i could be doing THEM a favour![/QUOTE

Charging orders secure the debt so they'll probably want 100% back.

Pull2Open · 02/07/14 - 19:35

I know someone who tried this recently with a bank and they wouldn't budge on the full amount. A friend had a £7K debt and offered 4K. They sent hem a letter saying that they were happy to take it as part payment but the full amount is all they will accept to clear it. I suspect that this is happening a lot now and banks have got less charitable.

[Deleted User] · 02/07/14 - 19:46

i think you've got nothing to lose by offering, but as the debt's secured, they're unlikely to accept.

in theory you're right in that you're only paying £175.00 per annum at the moment, but when your property is sold, they will recover 100% of their debt (Assuming you're not in negative equity).

it's worth a go though, they might just be glad to get the bad debt off their books.

good luck

TUTV Viewer · 02/07/14 - 19:55

Jimbo99 wrote: »

ch958 wrote: »

yes i was unemployed which is how the debt accrued

if they say no they get 175 per annum til i die - maybe 15 years at my age = about 2.5k in round figures
or 4/5 k now - thats how i'm looking at it

i could be doing THEM a favour![/QUOTE

Charging orders secure the debt so they'll probably want 100% back.

If they wait until you die, they'll be able to recover the money from your estate.

Hey there!

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