Full and Final settlement
Trying_2
Posts: 4 Newbie
Hi
I have large debts that I need to get cleared asap, there are a couple of companies that have said that they can get settlement of around 50% in some cases more, of the debt.
Has anyone tried and been sucessfull in clearing debts in this way?
Thanks
I have large debts that I need to get cleared asap, there are a couple of companies that have said that they can get settlement of around 50% in some cases more, of the debt.
Has anyone tried and been sucessfull in clearing debts in this way?
Thanks
0
Comments
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Can you give a bit more detail? ie Are you in a DMP? Who are the debts with and how much for?0
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Hi
The major ones are HSBC £30k, Egg £17k, M&S £7k. Total around £60k
Not in a DMP. Just managing to keep up with payments at the moment, just need rid of the debts now.0 -
Oh OK. Have you missed many/any payments because I was led to believe that the companies wouldn't offer you final settlement fees if you were managing to make payments! (why would they?)0
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Have been behind in the past. Basically i want to tell them that i can just pay now but wont be able to soon. I can get some help from family but it means that all the debts needs to be cleared.0
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Someone else with a bit more "know" will be able to answer this better but from what I've picked up from these boards is that companies only agree a settlement figure if they feel they are not going to get the full ammount. The only reason they conclude this is because you have defaulted on payments and are in DMP's so they take they agree the settlement figure instead of risking getting nothing!
Thats what makes me surprised they would agree to wipe a load of the debt off if you have been within reason up to date.
Have they actually told you they are willing to take a settlement figure and whats your payment history like with them.
Don't forget also that it will affect your credit report!0 -
Companies are only likely to agree if you are already behind & have no way of paying in the future - they would need a budget and to know where you are getting the money from. If you own your own house, or are working it is unlikely.
If they did agree it would be noted on your credit report as settled, but not in full. If you want to borrow money in the future, it will have a negative impact - as what bank would lend more money to someone who borrowed money and didn't pay it back in full?0 -
louise1234 wrote:Companies are only likely to agree if you are already behind & have no way of paying in the future - they would need a budget and to know where you are getting the money from. If you own your own house, or are working it is unlikely.
If they did agree it would be noted on your credit report as settled, but not in full. If you want to borrow money in the future, it will have a negative impact - as what bank would lend more money to someone who borrowed money and didn't pay it back in full?0 -
I know that its guna have an effect on my credit file, but I need to get rid of the debt. And will not be able to meet the monthly payments0
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Have you tried contacting the CCCS or your local CAB?
If you list all your outgoings people might be able to help you find ways to cut back.0 -
Note, the original company you owe the money too is unlikely to do a full and final. Its more likely the debt collectors that they hand the debt onto that will do that. And to get them to do that you would need to either default or get on a long term DMP.
The other problem you will encounter is that 50% is the minimum they will usually accept, you should plan on paying beteen 70% and 80%.
Regards
XXbigman's guide to a happy life.
Eat properly
Sleep properly
Save some money0
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