No. of Recommendations: 95
Hi Folks,

I haven't been able to get involved much lately, but I've been lurking in the background a bit.

IMBalance made a good point in his earlier post about various letters to creditors and the like and I think that it would be a good idea to draft up a couple of letters that just might help sway creditors, to accept sensible proposals when you're not quite having the best of times.

I have knocked up the following two letters in the hope that it may help some people to make a start, which as we all know, is the hardest part.

Letter No.1

15 May 2001

Leach & Co,
Credit Card Company,
1 Robbers View,
Right Innit,
I0U 5P

Dear Sirs,

RE: Leach Credit Card – Account Number:123456789

I write to advise that due to unforseen circumstances, I consider that I will be unable to meet my financial commitments in full, for the immediate future.

I would like to assure you, that I take my responsibilities quite seriously in this respect and have given the matter considerable consideration. Whilst I hope that my situation will improve in time, I feel that I will be able to satisfy my debts in full, with careful planning and a little assistance from my creditors.

I have considered approaching a debt management company, but rather than incur significant fees in this respect, I feel that if we can agree on sensible proposals, it would be better to employ the money saved, to pay off debts in a shorter time.

I have enclosed herewith a list of my creditors, which shows the balances left to pay and the regular monthly payments to each, together with a list of my income and expenditure *. You will note from the statement, that I have a monthly disposable income of £xxx, from which I propose to deduct £xx per month for emergencies, which would leave a monthly balance of £xxx.

Under the circumstances, I propose to divide the balance of these monies equally amongst my creditors and once some of the smaller debts are satisfied, I will increase the dividend accordingly. I would also add that in the event that my circumstances change for the better, I will increase payments as and when I am able and would propose in any event, to review the situation with you on a quarterly basis.

I would be most grateful if you would kindly consider freezing interest on this account, to enable me to resolve the matter quickly.

Yours sincerely

I.M. Broke

Note - where you see the * you should have a look at post 775 which explains the statement of affairs, or alternatively, look on the get out of debt board, Monkeee has done an excellent job of producing a statement of affairs calculator.

Now then!

Surprisingly enough, you may find that some of the creditors are not happy bunnies and they may send you nasty letters (there's a factory in Ware in Hertfordshire where they manufacture these people specifically for credit card companies and banks - Honest! - Well, if David Icke can get away with it - so can I.

Anyway, I digress. If you get a silly letter back saying that they won't accept your offer and they intend to have you shot everyday at dawn for the next six months, fire the next letter at them.

Letter No.2

15 May 2001

Leach & Co,
Credit Card Company,
1 Robbers View,
Right Innit,
I0U 5P

Dear Sirs,

RE: Leach Credit Card – Account Number:123456789

Thank you for your letter of xx xxxxxxxx xxxx, in respect of the above matter.

I am disappointed to note, that you will not consider my proposal to satisfy my debt to you. I appreciate, that this is not a wholly satisfactory state of affairs, but this is the reality of my situation.

Due to my present circumstances, I am unable to offer a better resolution and would respectfully ask that you reconsider my proposal, which was submitted in a genuine attempt to honour my commitment to you.

I further appreciate that you are not obliged to accept my proposal, however, considering that you are entitled to issue proceedings for the recovery of the balance owed to you, I would ask that you also consider, that in the event that these proceedings ensue, interest would be frozen upon Judgement and I would entirely reserve the right to produce my proposal for the attention of the Court and to make an application for a reduction of my previous offer to you.

This notwithstanding, I would hope that the foregoing will not be necessary and that we will be able to resolve this matter amicably. In the interim, I will forward payments to you as proposed, as a gesture of good faith.

Accordingly, I await your further comments.

Yours sincerely

I.M. Broke

Joking apart, if you send the first letter with a list of creditors and an income and expenditure list, you will probably find (but not always - cos sum ov dem are ded fick ) that they will consider that you've thought out the problem and have made the best offer that you can in the circumstances and will go with you. Just remember - contact them before they contact you.

The foregoing is not intended as legal advice, it's just some guidance intended to give an example of where to start and how to make a first approach

I hope that this might be helpful, if it is, let me know and I'll knock up some more, maybe one for credit management companies who haven't delivered their promise?

In the mean time, if IMBalance is looking in and if you want me to email these letters to you for your web space, send me an email and I'll forward 'em to you.

All the best

Cheers - Col1n
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DWD - The Best Bits
Welcome - suggestions for new visitors to the DWD board.
The Fool's Guide on How to Get Out Of Debt
Statement of Affairs Calculator
The Art of Snowballing - the key to killing debts!
Snowball Calculator - Pay off your debts in the right order
Letters to Creditors - some suggestions.
What can I do to Them? - "Don't fear your creditors!"
What can They do to Me? - what a debt collector can and can't do.
Who to complain to about Debt Collection Agencies.
Harassment - what you can do about it. Update - about your right to sue for harassment.
Bankruptcy - questions and practicalities
The workings of the UK Tax system - avoid nasty surprises!
When all looks bleak - regarding suicide.
Golden Older Stuff! (from 2004 and before).
Wider debt discussion
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