owe £40k on 4 OC owed Card Debs, family offering to pay them of by F&F - is this a good idea - is there a template for this?

[thugusher]

Hi

I want to make a full and final settlement to 4 creditors I owe £40k+ in creditcard debt. These were accumulated during the covid period and I have been paying minimum amount and its no longer feasible. .A family member is offering to help me settle these debts.

Has anyone successfully offered a f&f settlement and can share the template they used obviously taking out any PII info. Any helpful advice greatly appreciated 

[dx100uk]

are these still owed by the original creditors?

and when were the cards taken out?

dx

 

[thugusher]

Yes they are still owed by original creditors.

Three of the cards were taken out in 2020.

Whilst I have had one from my bank over 10years. Before lockdown I had zero creditcard debts. 

[dx100uk]

have you had default notices issued on any of them yet?

i know it's tempting when people offer money,  but its really rather a waste. far better to use it to go on a good holiday or something or say to them keep it as i have a long term plan.

you'll get a far far small sum to pay off via an F&F once/if these debts are sold on to DCA's.

pers if i was you, id simply stop paying them all now

get each one defaulted via the issuance of a default notice.

then when thats done offer a pro rata payment. 

i've moved you to the debt selfhelp forum

plenty of like threads to read .

 

dx

 

 

 

[thugusher]

Thanks for the response dx... Unfortunately i have a large mortgage which it's fixed rate expires next year so i cannot afford to have defaults on my credit file. I understand if my f&f proposal is accepted it would show as partially settled. 

[dx100uk]

which will make no diff to the default still showing and you chances.

paying a defaulted debt off does NOT remove the default. nor change the marker that can be seen on CRA files 

and you do not ever ever show a broker nor a mortgage company a full copy of your credit file. 

they cannot see the calendar section only you and the owner of the debt can see that.

people searching you file, only see the summary line. i'e defaulted. they wont se any settled marker.