Paying £1 pcm

[roaringgirl]

Do I have to pay more than £1 pcm?

[Consumer dude]

Do I have to pay more than £1 pcm?

 

Regarding what ?

[roaringgirl]

repaying a debt

[havinastella]

repaying a debt

 

I think CD was trying to get JUST a bit more info to help you. If the debt is for £2 thats a fantastic offer.

 

Please explain what the debt is for, how much, to whom. When did you last make a payment? When was the debt taken out? Are there any PPI/Charges on the account?

[havinastella]

What is your financial position now? ETC ETC

[sequenci]

Do I have to pay more than £1 pcm?

 

if, once you've completed a comprehensive financial statement you have spare surplus money that would then be given to your creditors. If you have any 'priority' debts (such as rent/mortgage/council tax/fuel arrears) you would arrive at affordable arrangements with those first; then whatever is left is given to your 'non-priority' creditors (credit cards, loans, store cards, overdrafts, catalogues etc). If you have one non-priority creditor they get all the spare surplus money. If you have more than one you would divide the surplus up on a pro-rata basis (the bigger creditor gets a higher share than a smaller creditor). If your budget sheet reflects that you have no spare surplus income or a deficit - you'll only need to offer £1 per month.

 

Hope this helps!

[roaringgirl]

thank you sequenci - what I want to know is if I offer most of the 'surplus' money to the biggest creditor,legally can I be allowed to pay only £1 pcm and do they have to accept?

[renegadeimp]

You can snowball payments to creditors, but if you do, i strongly advise that you DONT let the other creditors know.

[sequenci]

thank you sequenci - what I want to know is if I offer most of the 'surplus' money to the biggest creditor,legally can I be allowed to pay only £1 pcm and do they have to accept?

 

No, they don't. A creditor would only have to consider a reasonable offer based upon a fair share of any surplus. In addition the figures listed within your outgoings would have to be reasonable too, there are guidelines for this. The only time where £1 is reasonable is if your budget dictates - and even then there is no 'legal' requirement for it to be accepted although the creditors would be in breach of various guidelines if they didn't.

[sequenci]

You can snowball payments to creditors, but if you do, i strongly advise that you DONT let the other creditors know.

 

Er, you shouldn't do this.

[renegadeimp]

Some people do, personally i wouldnt go anywhere near it.

[sequenci]

Some people do, personally i wouldnt go anywhere near it.

 

Nor me! I'm all for nipping everything in the bud and ensuring that further action isn't brought. Fair and reasonable debt management is the order of the day - both both creditors and debtors alike.