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Token payment - debt
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Purpledaffodils · 31/03/2017 21:33

I have a debt of a few hundred pounds for a catalogue. I was making payments but these became unaffordable when my circumstances changed.

I wrote to them with a new statement of incomings and outgoings, showing that I have no money left over each month and offering a token payment of £1 per month for the next 6 months.

They have written back saying to explain how I will sustain the payments as my disposable income is in negative figures.

I wasn't expecting this. What do they want me to do, withdraw my offer and pay nothing? I'm confused. Anyone been in this situation before?

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Olivialoves · 31/03/2017 21:35

they basically want to know how you're going to meet the £1 offer, if the figures you've given them show you can't afford it.

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ineedamoreadultieradult · 31/03/2017 21:40

So after all your outgoings are deducted from your income you have a negative balance? How are you going to afford the £1 per month then? Also unless you only owe them £6 what are you going to do after 6 months are your circumstances going to change? This is what they want to know as they are not allowed to accept a payment plan that you cant afford.

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Purpledaffodils · 31/03/2017 21:40

I can't afford it but all the debt advice I've read has said to make a token payment to show that you're serious about paying off the debt. Didn't know I could refuse to pay anything. What should I do now?

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Purpledaffodils · 31/03/2017 21:42

My circumstances should change in the next 6 months as I'm currently paying off council tax arrears but that will be finished by then and my mobile phone contract is also coming to an end in september. I won't be renewing it so that will save me £30 a month.

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ineedamoreadultieradult · 31/03/2017 21:43

I would show all the letters you have between yourself and the company to CAB or Stepchange and go from there.

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Purpledaffodils · 31/03/2017 21:47

I also tried going through things with them over the phone when I realised I couldn't make last months payment and it was awful. They said they can't amend the agreement unless I show bank statements and proof of bills etc first. I suffer with mental health issues and I'm pregnant and the whole thing is making me feel so ill. I don't know what to do anymore Sad

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FlappyRose · 31/03/2017 21:52

It sounds as though they're trying to be responsible. If you're budget is in a deficit position their concern may be that you accumulate more debt trying to make token payments to them.
Standard advice if you cannot afford any payments is usually to offer £1 if you can, more as an acknowledgement of the debt/gesture of goodwill, rather than to reduce the balance. It shows willing. However, if you really can't afford it, it's worth looking at your current income and outgoings to see if you can make any changes. CAB or Stepchange may be helpful with this.

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pipsqueak25 · 14/04/2017 16:23

you really need to speak to CAB or step change and talk it through with them, they may be able to liase with your creditors and come to some agreement, are you getting all benefits you are entitled to ?
are you working? tax credit ? could a family member help you out as a last resort - pay off your catalogue or council tax then you shedule a written repayment with them ?
my son paid off my very long [20 ish year] overdraft and i'm paying him back, it will be clear in 10 months as there no bank charges it is making life easier to do so.

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