Income & Expenditure negative available

[thenorms]

I've recently written to all my creditors stating that I have been in financial difficulty, and requesting as a temporary measure they accept a reduced payment and freeze charges and interest.

 

I then followed with another letter including an income and expenditure form.

 

As my income has fallen, 50% of household costs and priority debts leaves me with no available funds to make payments towards unsecured creditors.

 

I'm able to make an offer of low payments because my overall household income will allow it, although my partner also has unsecured lending etc as well.

 

One loan creditor has replied to me with the following:-

 

Thank you for your income and expenditure, from the information received you have a deficit of £xxx/month so we are unable to come to an agreement to accept a reduced repayment due to the fact you have no affordability.

I would suggest you now take Independent Financial advice with such companies like Step Change or CAB

 

In refusing an offer of payment aren't they effectively pushing me to complete default as I can't manage the full payments? In which case we would have to go to Court and they wouldn't be awarded anything anyway?

 

Thanks in advance

[dx100uk]

nope they'll sell it on to a debt buyer

list your debts

and who owns them now

[thenorms]

ZOPA Loan 3,076

Ratesetter Loan 3,225

MBNA/NUBA Card 5,569

Lloyds Credit Card 2,844

Creation Credit Card 6,331

American Express Card 9,445 Allied International contacting me.

Next directory 1,876

total 32,366

 

All are still with original creditor, although Allied International have been instructed by Amex.

[dx100uk]

not a lot they nor you can do then

ok your credit file ewill be screwed for 6yrs but heyho.

[thenorms]

But why wouldn't they accept a reduced payment as I have suggested it is a temporary measure?

I anticipate being able to service it all again by the end of the year.

Surely if I can do that and then make the normal payments thereafter, my credit score would begin to look ok again eventually?

If my credit ends up trashed for 6 years despite any efforts, then what is the point?

[dx100uk]

you'll be defaulted regardless = whats the point - yep!