Just been offered a partial settlement from the MBNA works out at 29% so happy with offer,but am a bit worried at the wording partial done a google search and get lots of comments about how they could come and try and get more money of us at a later date or sell it to a third party who may try and get money of us.
Asked them to put it in writing that they will not chase for anymore money and that the debt will not be sold on to a third party, which they have done by today by email still awaitng hard copy, which is in the post.
Am i safe in going through with this payment is there anything i should be careful of or ask.
Is this your only creditor Frank? If not, are you going to be able to offer a similar settlement to the others, or can you manage to pay the remaining debts on a contractual basis?
I take it you are not in an IVA Frank? If so, you can't do a settlement with them.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Sorry should have said, not in a IVA just entering a DMP, tried for a IVA but not enough disposoble income,but clearing the MBNA debt should allow us to try again for a IVA.
All the other creditors have agreed to my DMP payments,MBNA are the only ones who came up with a settelemt offer.
The debt settelment will be paid by one of my parents.
I suppose he means that if he isn't paying MBNA monthly then he has more to offer the other creditors?
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
My thinking is the amount we will owe will be reduced, so even though the disposable income will be exactly the same due to the fact the debt will be less does that not mean we will have more chance in been accepted.
Our rough figures were £80k debt iva payments were calculated around £400, but our disposable income was £300.
But by settling the MBNA debt of £20k,would that not bring us closer,to be accepted for IVA with our disposable income of £300.
Thanks.
Last edited by Frank on Thu Jul 30, 2009 7:17 pm, edited 1 time in total.
There are companies who will put you forward for an IVA on much less DI than £300. Cleardebt may be able to help with a low DI to debt ratio.
Give them a ring, it can't hurt and you may be able to get something sorted out.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
I am suprised that you were turned down on an offer of £300 per month across £80k of debt. OK so it does not provide a very good dividend, but if that is the best you can do so be it.
An offer of £300 per month across £60,000 does produce a better return - but not much, and of course MBNA become the ultimate winners as they get 29p whereas your other creditors only get about 22p. And are you going to include your parents as a creditor to the extent of their loan?
No the parent contribution was a gift for us to do with whatever, we were honestly going to keep it as back up money in times of need on the DMP.
But because of the offer from MBNA which they started at 40% but i managed to get them to down to 29%, plus i have read that MBNA are against IVA'S and they were our biggest creditor. I thought this would be a good move to get them off our backs.
MBNA are not against IVAs - they simply feel that if you could demonstrate that you could repay your debts within a 10 year period then that is what you should do.
They will also offer you the option of an early settlement, as you have seen, but you do need to be mindful of the other creditors as well. Personally I would advice you to put the lump sum from your parents, together with ongoing repayments of the affordable £300 into an IVA now, so that all creditors are treated equally.
frank your debt problems are yours so deal with it.hand your gift back to your parents with thanks, and express that you got yourself into this problem so you want to sort it out yourself with whatever disposable income you have.then try 2 or 3 iva companies recommended on this site ,then go from there, or get in touch with national debtline or citizens advice.good luck frank.
Last edited by MRBLUESKY on Thu Jul 30, 2009 9:28 pm, edited 1 time in total.
hi frank sorry to sound blunt,but i think you should try for a iva within your own disposable income,if you are accepted you could use any financial help from your parents to offer a full and final settlement to conclude your iva say 3 to 4 years down the line,so include all your creditors now and try other recommended companies.good luck.
Last edited by MRBLUESKY on Fri Jul 31, 2009 4:18 pm, edited 1 time in total.
