R91’s profile

14 Jul 2015 12:20:57
With debt values people forget to separate the sum owed and the interest accrued.

If you are planning on starting the pro-rata payments (which however nominal I suggest would be a good idea), make it clear in the letters to the creditors that your pro rata payments are to cover the sum borrowed + a generous allowance for inflation (3% won't kill you and won't ever be deemed undervalue).

This is important because in many cases where a debtor cannot afford to pay back the sums, courts may remove or greatly reduce the fees paid for excessive interest/administration fees by the agencies etc.

What this will avoid happening is 1 year down the line finding out that you have paid £££s back but they only covered the interest owed, while at the same time the original amount owed is still outstanding and generating a whole new debt interest.

Ed33, I don't own anything. I moved out of parents July 2014. I live in roomshare, nothing owned in my name.

If I wrote to all parties I owed money to, and offered 5 pound a month, as an example. (this may sound silly. )but would they be obliged to accept my offer or try to press court charges etc

Thanks Ed, I know I've put myself in this situation. Will they not continue to try and get this through other ways (I. E through a court settlement?) I was thinking about just going with a debt charity to set up a debt management plan. Just unsure about the pros and cons of each way.

Thanks for your time. I know you can't have a lot of it after all of updates these sites are going through