F & F settlement of DMP - is this the best solution?

[Debt Camel]

Re: F & F settlement of DMP - is this the best solution?

I'm sorry but you have been paying quite high amounts in your DMP previously and you have a lot of equity. I think Payplan is right that it will be hard to get many of those debts to accept a low F&F at this point.

How much are your son and his partner paying you in rent?

Are you currently looking for work? Does your wife work?

[ernieB]

Re: F & F settlement of DMP - is this the best solution?

No rent from the lodgers. Son is waiting for back operation, hence the move back in.

At present I am undecided on best course of action for me workwise. The cash I have would buy me a car to use as a taxi but this income would not allow for much to be paid off DMP.

My wife does have a full time job but this is coming to an end in February.

[Amethyst]

Re: F & F settlement of DMP - is this the best solution?

Thanks for those figures. It is going to be tight and it would have to be 10-15% offer accepted across the board. I agree with Debt Camel on the equity and previous DMP payments. If it has just gone down to tokens then usually you get a few months before they get narky.

Get the mortgage arrears paid up and ensure you can keep up to date on those payments until such time as you will be able to cover them from income again - or plan to sell the house, before considering any F&F's.

Charging order - this would be paid from your equity when you sell the property though so although you don't have to account for it at the moment it needs to be in the plan longer term. How long ago did they get the charging order and have they made any noises about installment payments on it?

The Overdraft - has that been defaulted for a while or is it a current overdraft on your banking account?

I do think you have nothing to lose by getting some CCA requests off and then going in with an offer at the 10-15% if they do not have the documents.

That Lloyds loan with paragon might be a bit narky. Do you recall when you took out the loan? was it a personal unsecured loan?

If they are all happy with the DMP as is then it could be wiser to leave alone until one or another starts making noises.

[ernieB]

Re: F & F settlement of DMP - is this the best solution?

Thanks for those figures. It is going to be tight and it would have to be 10-15% offer accepted across the board. I agree with Debt Camel on the equity and previous DMP payments. If it has just gone down to tokens then usually you get a few months before they get narky.

Get the mortgage arrears paid up and ensure you can keep up to date on those payments until such time as you will be able to cover them from income again - or plan to sell the house, before considering any F&F's.

Have taken your advice and arrears now paid.

Charging order - this would be paid from your equity when you sell the property though so although you don't have to account for it at the moment it needs to be in the plan longer term. How long ago did they get the charging order and have they made any noises about installment payments on it?

The charging order was done not long after the DMP was started about 6 years ago. Restons have been happy with the pro-rata payment worked out by PayPlan. They haven't applied for it to be varied.

The Overdraft - has that been defaulted for a while or is it a current overdraft on your banking account?

Overdraft defaulted about 5 years ago. I no longer use that account.

I do think you have nothing to lose by getting some CCA requests off and then going in with an offer at the 10-15% if they do not have the documents.

That Lloyds loan with paragon might be a bit narky. Do you recall when you took out the loan? was it a personal unsecured loan?

Both Lloyd loans are personal unsecured. The smaller one was taken out in 2008 and the other in 2009. Ironically, at the time the bank phoned me and asked was there anything I needed to borrow money for.

If they are all happy with the DMP as is then it could be wiser to leave alone until one or another starts making noises

Are you saying that I should try and make the full DMP payments or token payments and then wait for the all to shout?.

Thank once again for everyone's advice. Haven't talked to anyone about all this in 6 years. It is a great comfort not feeling alone in all this.

[Amethyst]

Re: F & F settlement of DMP - is this the best solution?

Have taken your advice and arrears now paid.

Well done. That really is the most important thing, the mortgage company have far more power over you than any of the minion DCA's, so it really was the absolute priority - glad to hear you have got that back up to date.

The charging order was done not long after the DMP was started about 6 years ago. Restons have been happy with the pro-rata payment worked out by PayPlan. They haven't applied for it to be varied.

I had a charging order with Restons too, with installments under a DMP - it was about 6k as I recall. I had no problems with it and I think it just got paid up when I sold my house ( though it was mixed up in a divorce and whatnot so I'm not really sure - but I never heard anything else lol ) - so we needn't worry about that one at all - just keep those payments up under the DMP.

Overdraft defaulted about 5 years ago. I no longer use that account.

Okay good, so just a bog standard DCA debt now.

Both Lloyd loans are personal unsecured. The smaller one was taken out in 2008 and the other in 2009. Ironically, at the time the bank phoned me and asked was there anything I needed to borrow money for.

lol, yes banks love to be helpful while you're getting IN to debt, not so helpful when you're trying to get back out.

Are you saying that I should try and make the full DMP payments or token payments and then wait for the all to shout?.

I'd keep the payplan dmp running at token payments for the moment and deal with any cca requests / full and final offers separately. Debt Camel is far better than I at things like Payplan and reducing debts in the best way - I know payplan and other DMPs are funny with paying one debt over another etc and insist everyone is treated equally, but in the real world I always think the riskiest debts should be sorted first. Flaming Parrot will know which ones are riskier - eg. we see a lot of Cabot claims on here, hardly any paragon/NCO/westcott ones, so i'd be I'd be inclined to look at that one first.

It's a Citibank credit card so a CCA request could be in order - but see what DC and FP think.

[ernieB]

Re: F & F settlement of DMP - is this the best solution?

Thanks once again Amethyst.

Have been offered 2/3 days a week driving work so should be able to keep the wolf from the door and hang on to cash fund for now. Just in case full and final offer becomes viable.

[Debt Camel]

Re: F & F settlement of DMP - is this the best solution?

I would definitely keep you small cash stash and pay token payments,

Have you looked into reclaiming PPI? Even if you don't think you have every had any, it's worth a try! See http://debtcamel.co.uk/ppi-out-of-debt/

[ernieB]

Re: F & F settlement of DMP - is this the best solution?

Hi DC

Ironically I was careful not to have any insurance on any of the ccds. Shame I wasn't so careful adding debt to them. I have gone over all my old statements and there are no 'extras' on any of them.

I am looking at the Lloyds current account. For a while I upgraded to one of the premium accounts. Am checking to see if the upgrade coincided with taking out one of the loans. Can't honestly remember if the loan was conditional on the upgrade.

Will continue with the token payments and will work out new income and expenditure figures for PayPlan when my new work settles into a pattern. Don't think I will end up with than token payments to the creditors. The only one I will pay as agreed is the ccj to Restons.

[FlamingParrot]

Re: F & F settlement of DMP - is this the best solution?

Will continue with the token payments and will work out new income and expenditure figures for PayPlan when my new work settles into a pattern. Don't think I will end up with than token payments to the creditors. The only one I will pay as agreed is the ccj to Restons.

It is also possible to reduce payments on a CCJ but you need to apply for a variation using an N245 where you need to provide your income and expenditure details.

[Wingco]

Re: F & F settlement of DMP - is this the best solution?

Do search for PPI payments - you are unlikely to see them on statements. I have had over £20K back just by asking. And Lloyds were one of the main PPI offenders. There is also money to be had by reclaiming packaged bank accounts and again Lloyds insisted I upgraded for my Business Account - I'm in the process of reclaiming that money too.
Most of the PPI I was paying was unknown to me: I used to sell similar products (Key Man, PMI, and Critical Illness policies) and so would never have knowingly bought PPI. The good news is that Lloyds contacted me about a one year £24K business loan and 2 weeks ago I received nearly £2000 in mis-sold PPI which included interest and £500 compensation - it only took 8 weeks. But I had no idea I had it on that loan.
I once popped into Lloyds to ask how much I could raise with a £200 per month payment. She asked how much I needed for a car I had just seen and presed a couple of buttons, no compliance questions asked, and £16,500 was paid into my account. Years later I discovered it was an 8-year loan and I had been paying a massive PPI premium - I received over £7000 in compensation.
No harm in asking all your creditors but beware their mis-leading answers:
One Lloyds Bank manager told me in my home whilst signing up a new business account that "Lloyds never sold PPI". At the same time she was adding PPI to my bank loan and insisting on a useless Premium account with Breakdown Cover (I have it with Green Flag), travel cover (I have annual cover with Elephant) plus other items which were of no use to me.
go after them - you will be surprised - I'm sure.