DAS - advice needed!
Thanks Kevin for the optimism - unfortunately I'm not feeling particularly positive just now!
I'm going to wait before making another settlement offer - I genuinely don't feel up to dealing with my money advisor again right now.
Hello again. It's something I had been putting off but this week I've finally got in touch with my creditors to change my address with them.
When I spoke to one I asked about the partial settlement offer made via my DAS money advisor but there was nothing on my account to say it had been received though they would have possibly accepted and I should check with everyone I spoke to.
Another one said immediately to register online where there was a 40% offer for me (£5,800 on a £14,600 debt) and another has got back to me today to say they had accepted the offer via the DAS back in December but had been advised they were too late - this would have been £1550 on a £6,600 debt or 23.5% of the outstanding sum. If I were to pay these two sums it would immediately half my outstanding debt.
I now really don't know what to do. I'm starting to think again that I should try to exit the DAS and deal directly with my creditors. Of eight creditors five have either made an offer or indicated they'd be open to one. Kevin, I know you've advised against this before but would this new information make any difference? If I accepted these 2 definite offers while on a payment break would my DAS be revoked immediately or do I have, in effect, 5 months to try and negotiate with creditors?
The way the Eden system works is a bit clumsy in the way it deals with settlement offers and it is common for creditors to fail to reply in time because it only stays as a live proposal for 3 weeks. However, when we have had this problem we have put the proposal forward again in order to put through the creditor's acceptance then. Sounds like your money adviser didn't do this.
Ideally you shouldn't have to come out of your DAS to arrange these lump sum settlements, but if your money adviser isn't proving very useful in this respect then you might have to consider doing so, or at least asking your money adviser to consent to you switching to a different money adviser that can achieve this for you.
If they will not agree to do this then you could consider asking them to revoke your DAS Debt Payment Programme instead. To be honest, it is hard to say whether or not this would be for the best. On the down side, any interest/charges that creditors may have been applying will not have to be written off, because you haven't successfully completed your debt payment programme. However, they may not have been adding much in the way of interest/charges anyway and if several of your creditors are willing to write off a chunk of what is owed anyway then you may be better off just going for revocation and organising settlement as far as possible. It would be worth asking your creditors directly what would still be owed if you cam out of the DAS and comparing that to what is still left to pay within the DAS in order to weigh this up.
If you go ahead and request revocation then settle some of your debts, you could then set up the DAS again to pay off the remaining debt once you are able to afford to do so. A moratorium would give you 6 months protection from any creditor action in the meantime. You would no longer pay a monthly fee for the new DAS, so would save £30pm. Of course, however, there is no guarantee that your new DAS proposals would be approved. It would really depend on what you can afford to pay at that time.
If you would like to discuss his with me then please feel free to get in touch with me directly via the contact button.
Thank you Kevin, I'm going to contact you via message.