Partial/full and final settlement offers
Options
Lollyr822
Posts: 4 Newbie
Hi all, I'm going to try and make some offers to my 4 creditors to clear my debt.
few questions....
I know you used to be able to negotiate term of an agreement, like getting them to say that the debt is settled in Full. i spoke to a creditor this morning who said they wont ever do this now and will only ever show as a partial settlement. is this correct?
Also you used to be able to negotiate to get defaults removed....is this also now a thing of the past?
Finally could anyone point me in the direction of letter templates to make a settlement offer please?
Many thanks
few questions....
I know you used to be able to negotiate term of an agreement, like getting them to say that the debt is settled in Full. i spoke to a creditor this morning who said they wont ever do this now and will only ever show as a partial settlement. is this correct?
Also you used to be able to negotiate to get defaults removed....is this also now a thing of the past?
Finally could anyone point me in the direction of letter templates to make a settlement offer please?
Many thanks
0
Comments
-
Only full settlement will result in a "satisfied" marker.
Partial settlement is just that, partial, and will be marked as such.
The rest is up to what you can negoatiate.
National Debtline the place for template letters :
https://www.nationaldebtline.org/EW/sampleletters/Pages/Full-and-final-settlement-offers-%28sole-name%29.aspxI’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 -
Hi Lollyr822,
The key thing with full and final offers is to make sure that you get all of the terms of your payment agreed, in writing, before you send any money. The letter that sourcrates has linked to above is our sample letter. It asks the creditor to agree to write off the remaining balance, that neither they nor any other third party will chase you for the shortfall and that your credit file will be marked as closed with a zero balance.
It is also important to make sure that you divide your lump sum fairly between the debts. Some people tend to start a bit lower so they have some ability to improve the offer to the debts. I am afraid you won't realistically get a default removed as part of this process and the creditors will mark your credit file accurately (as partially settled). Good luck,
Laura
@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 -
Thank you for your help. Can I ask another question please?
on two of the accounts i owe (have 4 in total) it looks like the 6 years since default have just past as when I checked my credit file last night the 2 accounts weren't showing on my credit file at all. when defaults hit 6 years does the whole account just disappear off your credit file? I am unsure how it works. I thought the default would disappear but that my credit file would still show that i am in a payment plan and still owe money.
And a final question....what if 1 or 2 creditors accept an offer made and the others don't? Can you pay the 2 and then continue to pay the others as per the debt management plan agreement?
Many thanks0 -
Thank you for your help. Can I ask another question please?
on two of the accounts i owe (have 4 in total) it looks like the 6 years since default have just past as when I checked my credit file last night the 2 accounts weren't showing on my credit file at all. when defaults hit 6 years does the whole account just disappear off your credit file? I am unsure how it works. I thought the default would disappear but that my credit file would still show that i am in a payment plan and still owe money.
And a final question....what if 1 or 2 creditors accept an offer made and the others don't? Can you pay the 2 and then continue to pay the others as per the debt management plan agreement?
Many thanks
The whole account disapeers.
You can choose to do as you wish, as Great Britain is a free country.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 -
Hello again,
LauraThank you for your help. Can I ask another question please?
on two of the accounts i owe (have 4 in total) it looks like the 6 years since default have just past as when I checked my credit file last night the 2 accounts weren't showing on my credit file at all. when defaults hit 6 years does the whole account just disappear off your credit file? I am unsure how it works. I thought the default would disappear but that my credit file would still show that i am in a payment plan and still owe money. The debt will show for 6 years from the date of default or judgement and once it comes off the debt is no longer reported on your file. If you settle the debt as a full and final settlement then nothing else will appear on your file.
And a final question....what if 1 or 2 creditors accept an offer made and the others don't? Can you pay the 2 and then continue to pay the others as per the debt management plan agreement? Yes you can do that or you may argue that if they don’t all agree it is not worth your while only settling some of the debts. A key issue with this would be – how much do you owe in total and where is the lump sum coming from to help you do these settlements? It may be worth chatting to one of the free debt charities to talk about your other options if you couldn’t get all of the debts to agree to a settlement.
Many thanks
@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
This discussion has been closed.
Categories
- All Categories
- 343.6K Banking & Borrowing
- 250.2K Reduce Debt & Boost Income
- 449.9K Spending & Discounts
- 235.7K Work, Benefits & Business
- 608.7K Mortgages, Homes & Bills
- 173.3K Life & Family
- 248.3K Travel & Transport
- 1.5M Hobbies & Leisure
- 15.9K Discuss & Feedback
- 15.1K Coronavirus Support Boards