Informal arrangements

[stewpots]

Has anyone tried this and does it work ?

 

Ive been turned down by Payplan as I still have £1,500 left over to pay creditors each month

 

They suggest writing to each creditor offering to pay back pro rata based on what I owe and suggesting the interest is waived (they have drafted the letters)

 

For all the pro rata will be more then what they actually get e.g a Northern Rock loan £295 pro rata £340, MBNA interest only £395 + £5 ,pro rate £550 etc, so that wouldnt make sense ?

 

Do the MBNA of this world say 'poor chap thanks for the kind offer' we will stop the interest

 

Confused

 

Should I knuckle down and get these things paid rather then the informal arrangements ?? Most of my credit cards are on 24.9% or soon will be:(

[Hopeful1]

Has anyone tried this and does it work ?

 

Ive been turned down by Payplan as I still have £1,500 left over to pay creditors each month

 

They suggest writing to each creditor offering to pay back pro rata based on what I owe and suggesting the interest is waived (they have drafted the letters)

 

For all the pro rata will be more then what they actually get e.g a Northern Rock loan £295 pro rata £340, MBNA interest only £395 + £5 ,pro rate £550 etc, so that wouldnt make sense ?

 

Do the MBNA of this world say 'poor chap thanks for the kind offer' we will stop the interest

 

Confused

 

Should I knuckle down and get these things paid rather then the informal arrangements ?? Most of my credit cards are on 24.9% or soon will be:(

 

Hi Stewpots

 

When i defaulted on my Barclays bank acc. overdraft they refused to stop adding charges or interest, despite several letters asking them to. Throughout the negotiations, i continued to make payments i could afford. I eventually made a complaint to FOS (financial ombudsman service) citing that Barclays were making it impossible for me to clear the debt as the interest / charges amounted to more than the monthly payment.

 

BUT firstly, can you give more detail as to what sort of debts you have and who with eg Credit card with MBNA.

 

It may support your negotiations with the loan or credit card accounts to send off formal requests for copies of the credit agreement. If they do not produce one or indeed produce one that is enforceable, the cannot chase you. This gives you more bargaining power.

 

Post up your details and i can help direct you to template letters etc