F&F - starting offer %
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jules1973
Posts: 209 Forumite
Hi
I am finally in a position to start paying off my debt. We have been on a self-managed DMP Since Feb 2011 but have had massive gaps in payment plans due to money issues.
What sort of offer would it be better to start with? I don't want to go ridiculously low but would like to settle for as little as possible obviously.
Any advice would be appreciated.
I am finally in a position to start paying off my debt. We have been on a self-managed DMP Since Feb 2011 but have had massive gaps in payment plans due to money issues.
What sort of offer would it be better to start with? I don't want to go ridiculously low but would like to settle for as little as possible obviously.
Any advice would be appreciated.
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Comments
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I would think 25 - 30% would be a good place to start. Its likely that wont be accepted but when the companies come back with a counter offer you will have a better idea of what they will accept.
I could also depend on how much you owe. Are you hoping to save £100's or £1000'sAiming to make £7,500 online in 20220 -
I spoke to Creation Finance a while back about my debts (around 15k with them) and they guy on the phone said "just to let you know, if ever you get hold of some money, we will accept a 70% final settlement offer"
The fact he said this to me without me asking, I suspect they might accept a lesser offer. Only wish I had some money
The way things are going, soon we are all going to be victims of something or other.
Who will we blame then?0 -
Hi
I am finally in a position to start paying off my debt. We have been on a self-managed DMP Since Feb 2011 but have had massive gaps in payment plans due to money issues.
What sort of offer would it be better to start with? I don't want to go ridiculously low but would like to settle for as little as possible obviously.
Any advice would be appreciated.
It depends on many factors how much to offer in opening negotiations, these include :
The age of the debts,
Enforceable or not,
Still with original creditor or sold on.
If they are old debts, been sold on a few times, with no credit agreements, you may settle for between 20/30%.
On the other hand, if they are recent, still with the OC, and can prove liability, expect to pay top doller.I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter0 -
The total debt is about £28000 spread across 9 creditors. Debts date from 2005 - 2011. All sold on over the past six years, some multiple times. I have acknowledged them all within the past year. Two, I believe, are definitely not enforceable. Not sure on rest.
I'd love to settle for about £15000 but I think that is optimistic.
Thank you for the replies so far 0 -
The total debt is about £28000 spread across 9 creditors. Debts date from 2005 - 2011. All sold on over the past six years, some multiple times. I have acknowledged them all within the past year. Two, I believe, are definitely not enforceable. Not sure on rest.
I'd love to settle for about £15000 but I think that is optimistic.
Thank you for the replies so far
The ones that are not enforceable can wait.
If you haven't, you need to send CCA requests to all of your creditors, see here for details: https://www.nationaldebtline.org/EW/factsheets/Pages/getting-information/credit-agreement-advice.aspx
The long and short is simple: If they can't comply, they can't enforce the debt at court. Making you able to settle for pennies if you so wish.
Remember the CCA does not apply to utilities, Mobile phone contracts, Overdrafts and official debts like Council Tax, HMRC overpayments etc.
If they are enforceable, start by offering 30%, and work your way up. You never know what the DCAs may accept until you ask.
In debt and looking for help? Look here for the MSE Debt Help Guide.
Also, If you need any free and impartial debt advice, the National Debtline, Stepchange, and the CAB can help.0 -
Hello jules1973
There are so many variables in each full & final negotiation that I would just advise you to be prepared to persist. By all means start significantly lower than the maximum amount that you/a third party can raise - the worst that can happen is that your offer gets rejected; it doesn't stop you trying again.
Is this money that you've managed to save up yourselves or is there a third party offering to help?
The general guidance in our lump sum settlement fact sheet may be of use:
https://www.nationaldebtline.org/EW/factsheets/Pages/fullandfinalsettlementoffers/lumpsumoffers.aspx
Dennis
@natdebtlineWe work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps0
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