Token payments. I have not yet missed any payments but will do so next month and so intend to make token payments. I was planning to give all my creditors 10 pounds each. Given that I have 3 separate loans with Egg, plus an Egg Visa card and an Egg Money Mastercard (as well as my debts to other companies), should I give Egg a single payment of £10, a single payment of £50 pounds (5 x £10), or should I write 5 separate letters (one for each account) with a £10 cheque? Can you also tell me what kind of extra charges lenders are likely/allowed to add to the balance I owe them. Thanks.
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you cannot treat creditors in a preferential manner so would need to pro rata these payments per creditor.
it will also not immediately stop phone calls, letters etc so if you were planning on presenting in Feb then probably not worth setting up a payment arrangement that you are likely to break any way.
additionally if you set up a DMO for £10 each then in Br have an IPA for 400 it would seem off that you did the dmp in the first place
Paul Johns Assisted Bankruptcy Specialists Reviva UK
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So if I'm going to do pro rata token payments - is that pro rata based upon the total amount owed to each creditor or the normal monthly payment? Also, as before, if I have several debt products with one lender (e.g. Egg) should I deal with that as a single payment?
I don't want to set up a proper DMP - I'm planning on going BR probably early next year. I just wanted to make token payments to try to keep the creditors at least vaguely happy that I've not just gone silent and stopped paying anything.
Regarding the amount: I don't want to use up ALL my spare money on token payments because of Christmas. I'm sure this is not strictly proper, but at the end of the day I need money for Christmas so was thinking of making smaller token payments.
have not yet missed any payments but will do so
Posted - 14 November 2008 : 14:17:32
