At TC Debt Solutions, we can advise you of how to make the best offer in all cases.
Getting The Best Deal
The first decision to be made is whether you wish to pay off one particular creditor or make an offer to all your creditors. Again, our experienced advisers will help you with this, based on a full discussion and understanding of your complete personal circumstances.
If you or we decide together on a course of action to pay a number of creditors, the calculation is as follows. To work out the amount that you need to offer, you multiply the lump sum that you have available by each individual debt, and then divide by the total amount you owe to all your creditors.
So, let’s say you owe a total of £20,000 and can raise a total of £8,000 as your lump sum. You owe a number of creditors who include Mastercard (£12,700), £1,300 to a store card and £6,000 to the bank.
In the above example, you would calculate the repayment as follows (taking the example of the Mastercard debt):
£8,000 (your total lump sum) x £12,700 (the debt you owe to Mastercard)
÷ £20,000 (the total amount you owe to all creditors)
You then make the same calculation for each of the other debts.
However, as stated above, this might not be the right course for your circumstances. It all depends on: your current financial situation; the amount you owe; the amount you have available; the history of your debt repayments; and your age and health.