Hi Amnesia

What you have done in terms of the letter seems fair and reasonable to me. Do bear in mind that once you make communication with the DCA's, they are more then likely going to help with a resonable repayment plan.

Best of luck with it.

Thanks

Thanks for the help all.

We've started the ball rolling by responding to all three letters. There are two DCAs involved and the other is direct. In total, the amount owed (in arrears) is about £1000, so not a huge amount but still quite a bit. Plus on top, I assume there is interest plus the other line-rentals that are continuing.

After searching the net, I've put together a letter stating a few key points. 1, her working hours are now less than 20 per week and she can't afford the payment they are suggesting, therefore she is offering a token payment of £1 per week. I've requested their bank details for the standing order to be setup immediately. 2, Made this offer on the understanding that interest and line-rental to be frozen until arrears are paid. 3, as soon as her circumstances improve (which hopefully won't be long as she is in the process of getting a better paid full time job) she will be in touch to start paying larger amounts to clear the debt.

This is just the initial stage and at the very least, if it gets to court, the judge will be able to see that my partner is approaching the subject and is making an effort.

We are going to wait to see the replies :-)

Any other advice?

I've read this short thread and it appears poor amnesia is caught in the cross fire and probably missed any real help offered.

CMK makes an excellent suggestion in obtaining a 0% credit card and paying off all the debt (then cut up the card!!).

As per George B - Make a 'full & final' one off cash offer to each creditor (start at about 20% of the outstanding balance). Don't expect them to bite your hand off though. They may negotiate upward.

The CAB website has templates and advice for working out your own debt management plan. Work out how much you can well afford each month. Divide that proportionately between all the creditors and make an offer of that as a monthly payment.

G

Yes I am qualified to advise on specifics.

Shakey

Shakey - i agree with the above and commend you for helping out for free. just have to ask are you qualified to advise on specifics?

G

1. The forum is excellent in providing information but it is unlikely to address Amnesia's partner's specific requirements.

2. I am intending doing this for free. People have posted general pointers as to a way forward but nobody has offered a specific solution and nor could they without knowing specific detail of the partner's finances.

3. When I know specific detail I hope to offer the best solution which will depend on the partner's individual situation.

If, as the forum police, you have the answers please offer your advice by all means.

Mod - All advice on this forum only please within the existing rules. Any offer to contact outside of this forum breaches the forum rules, contravening posts will be removed.

Guys - lets look at how we can help amnesias partner.

Amnesia - here are your options.

1. short settlement , good if you can do and you can afford to but not everyone will let you.

2. Debt Management Plans - this means you will pay back x amount per month. benefits are you might be able to stop the interest building up and you can pay what you can afford

3. bankruptcy - very extreme and has consequences.

4. IVA - you have to have debts over 15k.

mooreaz i can see where you are going with Shakey but he is right in that you need more information - you cant just sign up to anything. you need to know the pros and cons of each. you can get a feel of the whats right on this website.

after you know that then you can make an informed decision.

Having been there and done that, i would avoid the CAB as they nearly screwed things up for me. i am nearing the completion of a debt management plan (i have a year and a half left). if you can do it on your own then great but i wasnt that disciplined.

http://www.moneysupermarket.com/community/forums/t/debt-consolidation-companies-37510.aspx

Shakey:

The forum is not a suitable place to provide a specific solution to personal debts.

This forum has provided a great number of people with the information necessary to take control of their finances and help haul themselves out of debt.

Shakey:

I am simply offering to have a look at Amnesia's partner's position and subject to what I find I may be able to offer a solution.

And are you intending on doing this for free, offering impartial advice that will help only Amnesia? This is what is offered through this forum.

Shakey:

but I'm not going to break my back trying to justify my offer of help

Maybe it is worth offering an explanation of what you intend to provide.

Mrstella0

Your advice in respect of contacting the CAB is spot on however the onus is then on the person who has the debt to negotiate with their creditors. Depending on how many creditors and the amounts involved this is potentially not as straightforward as it would appear. It can take significant management. Please also be aware that one creditor is not obliged to accept proposals from an individual especially one who has a number of other creditors.

Charities are another option worth considering.

For information: There certainly are scams out there and I would advise everytone to tread carefully however there are legitimate goverment backed potential solutions depending on an individual's circumstances. You are also correct to say that a debt cannot be "wiped" once it has been taken out however you should be aware that a very significant % of debts (up to 75%) can be legitimately "wiped" again depending on an individual's circumstances and what those debts are. This is nothing to do with "Unenforceables" which are an entirely different matter.

Key factors to potential solutions are:

1. Number of creditors

2. Amounts owed

3. Disposable income after day to day living expenses like food, gas, electric etc

4. Significant assets and/or equity

Hope this helps

Shakey.

Mooreaz,

The forum is not a suitable place to provide a specific solution to personal debts. I am simply offering to have a look at Amnesia's partner's position and subject to what I find I may be able to offer a solution. I certainly would not request nor expect anyone to send me personal financial details.

Amnesia,

Your call - what I can take via the forum is:

1. Amounts owed

2. To how many creditors

3. Any missed payments and to who

If you want me to help I will certainly have a look but I'm not going to break my back trying to justify my offer of help

Amnesia:Shakey, Yes please.

Amnesia

Be very careful!!!!!!!!!!!!!!There are a lot of scams going on at the moment to clear debts. These include debt management/loan companies charging up front fees, selling debts on, transfer of debts and miracle systems to clear your debts.

These are mostly scams designed to take money off you and will make matters worse.

Suggest that you do not agree to anything and use the free debt advisory services instead.

http://www.nationaldebtline.co.uk/

http://www.cccs.co.uk/

http://www.payplan.com/

http://www.citizensadvice.org.uk/

Huckster

Shakey,

Although your intentions may be only good, they may also be looking at your self interest and not at Amnesia's interests.

Please keep advice in here. CMK and many others manage it and the information is of use to more that just the OP.

I may be being over cautious, but I prefer that to no caution at all.

Amnesia - this forum is very capable of providing clear guidance and advice in a manner that is available for all to see (and if necessary question). I personally, would be wary of sending my personal financial details to a random hotmail address from the web...

Hope this helps everyone...

Amnesia,

OK-I can't deal with this via the forum so if you would like me to see what I can do please email me on xxxxxxxx

Shakey

Note: This post has been moderated - email address removed. Please ensure you read the moneysupermarket.com Community Standards and Terms of Service before posting. Thanks

I got into trouble with O2 a couple of years ago, they referred me to a debt collection agency who contacted me etc.

If you wish to close/pay off the account you will be liable for the rest of the line rental for the contract and any outstanding call charges/other charges she has already made.

So for example i had 6 months left on there with £30 line rental which totalled £180, plus £50 i had missed and then they charged me for falling behind. But i had to repay it all, and i had the phone cut off to stop me making it even more. The debt company were very nice, and i think i paid off £40 off a month for 6 months.

Im pretty sure the only way you can get a 'reduction' on a debt is if you offer the company X amount to pay it all off then and there - or if you go through one of these debt help companies who take control of yout money.

Good luck :) x