I have recently had to move through no fault of my own and my expenditure has increased due to additional travelling costs (£180 per month). However, Payplan are still asking me to maintain a £524.60 per month payment even though I have demonstrated that I can no longer afford the payment. They have simply sent me an email saying that I have been unreasonable in my budget and that I have enough surplus money to pay. I asked them to meet with the creditors and reduce my payments but they flatly refuse. I don’t even have a contingency or recreation in my budget, they get every penny I can afford.
I am unable to make the full payments (next one due on 1st September) and as a result of being extremely distressed by this, I have been offered £4000 by a member of my family for a final settlement. The actual IVA is due to finish in 10 months time. I have never failed to maintain my payments throughout the 4+ years.
(1) Do you think £4000 is a reasonable offer for a full and final settlement?
(2) Should I continue to pay something even though I can’t possibly pay the full £524.60 per month?
(3) How long do you think it will take before I get an answer from Payplan?
I would certainly continue to pay as much of the monthly payment as you can so that you dont fall too far behind while you try and get this sorted. I dont know what a reasonable amount would be to settle but am sure someone will advise you with that. You've not gor long to go now so keep trying as best you can.
Thanks for your reply, I think maybe I have misworded my first post. I have actually informed Payplan that I intend offering £4000 of the £5240 remaining on my IVA. I have made this offer because I am unable to afford what they are asking for but my Supervisor disagrees and says that I can. My Supervisor tends to be very unhelpful and seems to avoid any kind of communication with me or doesn't seem to want to do anything for me. Any words of advice is very welcome.
Personally I think it is a good offer. You are so close to finishing now, and if you can't afford to maintain the payments then you should be allowed to make that offer.
Insist on speaking to your IP, rather than the supervisor.
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.
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I am with Jan here,insist on talking to your IP whose wages you pay and suggest to him that you wish to make a final offer payment of £4k, and as you cannot afford to maintain the level of payments set it sounds like a good offer to me.
Let us know how you get on.
Discharged today the 8th feb 2012. View is much brighter now.
Continuing to rebuild our credit worthiness.