Offers to clear a debt letter advice. (Yay! they Accepted!)

Semi_2 · 17 December 2006 at 5:17PM

heya.

I have heard from some people that the debtors have given them Offers (Lower than the debt) to consolodate the debt.

how can i get them to offer me this offer if you know what i mean.
i have began to write a letter to try persuade them to do this.

What can you advise? also you think this will work?

here is what i got so far, is a draft too so not finished yet.

Dear Manager,

As you are well aware from my recent account information am in financial difficulties for some time now, more so from the past few months where I have not been able to make minimum payments.

I did make attempts as a plea for help, by sending you Expenditure Documents and Covering letters, but to no avail.

Currently making my Situation Worsen is that I have recently been informed that from January it is likely I will be dismissed from my Position of employment, due to the business being downsized.

To be blunt I will not be able to make any further minimum payments of the amounts you arrange. This should be clear from my current records. I also do not and will not have the Funds to clear my entire debt.

This letter is a plea to consolidate my Debt to you.

What I ask is for you to arrange a lower Final Offer in writing for me to clear the debt in a one off payment, and if possible a pay slip with the amount of the offer owed for me to pay this at my local Branch.

I was told by a representative via telephone from your Company that this is an option, I was also informed this offer could devalue my credit score.
I am aware of these consequences and will allow it, to in turn clear the debt to you in this instance.

Thank you for you time.

I look forward to your Response.

Regards.

learning_to_drive · 17 December 2006 at 5:21PM

Surely if you can pay off a lower final amount, you can afford to clear the monthly repayments?

Or am I missing something?

debtCollector_3 · 17 December 2006 at 5:22PM

Hiya

It is certainly worth a try, as long as you have the money to clear the debt off.... I have an debt agency on the phone the other day and they offered me a settle figure, which was about £2000 less than what I owed... however, I don't have the cash to settle the debt so I'm continuing to pay token payments just now....

Let us know how you get on...

DC

Semi_2 · 17 December 2006 at 5:26PM

A relative has offered to help, but i want to bring it down, as all the charges they have added over the time, i wanna recoup. also i feel bad enough i want to keep the ammount he lends me to a minimum.

Semi_2 · 17 December 2006 at 5:28PM

+ i sold my car yesterday. and that wil lbe finalised during the week. but i this wont clear my debts and i will still need to buy another cheap car from what i can save from the debts.

sgx.saint · 17 December 2006 at 5:29PM

Here is a cut & paste of a letter that I recently sent. What you are doing is requesting a Full & Final Settlement for a reduced amount.

You will ofc need to alter the letter that I paste to suit your own circumstances.

(Reference: XXXXXXXX – XXXXXXXXX)

WITHOUT PREJUDICE

We write with reference to the money which you are claiming on the above account. We can confirm that we are unable to offer to pay the money which we owe in full. However, I can raise £XX and I want to offer this an ex−gratia payment in full and final settlement of the account.

I fully believe that it is in your best interest to accept this offer as my current financial situation is unlikely to change for at least the next XX years, due to me being in full-time education and not having a sustainable income. I have attached to this letter a copy of my current income and expenditure with details of my current pro-rata repayments to my other creditors. As you will be aware in my previous letter to you, I can only afford to offer you £XX per month repayment in respect of this debt for the foreseeable future. I therefore reiterate the above genuine offer and hope that you will accept this as full and final settlement.

This offer is made on the clear understanding that, if accepted, neither you nor any associate company will take any other action to enforce or pursue this debt in any way whatsoever and that we will be released for any liability. We also request that, if accepted, you will make an entry on a credit reference agency file relating to the above account as "satisfied" in full.

Payment can be made within two weeks of receiving your written agreement of this offer and will be made by a third party into the relevant account.

This offer is a limited offer and if I do not hear from you within the next two weeks, I will withdraw the offer and use these funds towards my other debts.

I look forward to your considered reply.

Yours Faithfully

XXXXXX XXXXXX

Semi_2 · 17 December 2006 at 5:33PM

brilliant sgx, just what im looking for, what was your results?

im so gutted i only found out last week im the first to be let loose from my job because i was the last to join. gawd it sucks.

thanks for your advice guys, keep it coming.

sgx.saint · 17 December 2006 at 5:46PM

Hello Semi.

Usually you will get a letter back stating that they won't accept your offer etc. You then send them a follow up letter which has slighlty different wording to the first to prompt them again to accept your offer.

When you offer an amount, make sure you offer a little less than your actually prepared to repay. That way you can always increase your offer slightly so it looks like you are playing ball with the creditor/DCA.

Sorry to hear about your job. Chin up, it's life, it sucks hard at times, but what does'nt kill you makes you stronger

Semi_2 · 17 December 2006 at 6:15PM

Barclaycard £3477.91
Halifax One £513.00
Halifax O/D £573.53
Abbey £1912.43
Egg £1074.61

Total £7551.48

See the thing is what do i offer to each 1?

i have £4000 total maybe a bit less to try clear all of the debts and get a car.

My cool uncle is lending me £1000

and sold my car for £2950

medman · 17 December 2006 at 7:12PM

If you offer them 53 pence in the pound that would be pro rata. Simply multiply the debt by 0.53. That would share the 4000 between them.
eg Barclaycard would be offered about 1840. Hope that helps

(I got the 0.53 by dividing the 4000 by the 7551)

good luck

Semi_2 · 17 December 2006 at 7:24PM

Thankyou thankyou! math is not my strong point and well that just made this whole thing so much simpler.

feeling pretty good now.

Offers to clear a debt letter advice. (Yay! they Accepted!)

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