Full and final settlement help thread

tlines559 · 4 December 2014 at 2:23PM

Thanks Happy Bunny, this might be better in a different thread and if so I'm sorry but since you know all about my credit report... Can you get a mortgage with all this stuff on your report? Obviously not any time in the near future but say in a couple of years after all accounts are settled and have been for a while and I'm being good and haven't got any other issues?

happy_bunny_2 · 4 December 2014 at 2:33PM

From what read on here, you could probably get a mortgage once defaults are settled and at least 3 years old as long everything else is ok and you earn enough etc.

A broker job.

Best look on the mortgage board as this question gets asked a lot on there.

HB

Hello5_2 · 8 December 2014 at 11:37PM

Oh some very helpful advice here guys!

I'm starting to tackle my creditors to see who I can negotiate with so I will keep you posted!

Today I called balclaycard and put a cheeky offer in for 20% and they said no but said they would do 60% as a settlement so has another else had a better offer? To be fair I have been paying monthly as part of my debt management plan so they haven't defaulted me yet so this is prob one to pay ASAP!

I've also put an offer in for a 30% payment on an RBS loan which is with appex and they are calling me back

Have you guys found that you get better deals by negotiating on the phone or by letter?

Any tips for negotiating low settlements?

X

Thrugelmir · 8 December 2014 at 11:43PM

tlines559 wrote: »

Thanks Happy Bunny, this might be better in a different thread and if so I'm sorry but since you know all about my credit report... Can you get a mortgage with all this stuff on your report? Obviously not any time in the near future but say in a couple of years after all accounts are settled and have been for a while and I'm being good and haven't got any other issues?

You can most likely cross the lenders that you default (agree F&F settlements with) on off those that will offer you a mortgage. There's no such thing as a free lunch.

dizzydannielle · 10 December 2014 at 11:23AM

fatbelly wrote: »

So if you have debts of under 15k, you have no surplus income of your own and no savings from which to make a lump sum, would a debt relief order not be more appropriate?

You would not qualify if you are a homeowner or have a car worth over 1k, but a DRO would minimise the damage to your relative's funds - they could help you with the £90 fee!

To answer your specific question - Are they likely to accept a full and final at this time? The answer is probably not. These are all Shop Direct debts and I don't think they will play ball. Once they have sold the debt on to another company, or are thinking of doing so, there might be a chance.

Thanks for your reply FatBelly, today I have had letters stating that they will not accept my £1 a month token payment. I didn't think I would be able to do a debt relief order as I am already over £15,000 in debt. It is only the Shop Direct debt I am unable to manage.

fatbelly · 10 December 2014 at 7:44PM

dizzydannielle wrote: »

Thanks for your reply FatBelly, today I have had letters stating that they will not accept my £1 a month token payment. I didn't think I would be able to do a debt relief order as I am already over £15,000 in debt. It is only the Shop Direct debt I am unable to manage.

OK, you just said 11k plus others in your earlier post. The limit at the moment is 15k. I think it is most likely that the limit will be increased for DROs as they have been quite well received and take the pressure off the Official Receiver and the courts. But I don't know when that will happen.

Shop Direct are not easy to deal with (I may have said that before) but they do eventually sell the debt on and interest stops.

When you say you are 'managing' the other debts are you paying the contractual amounts, a token or something in between?

dizzydannielle · 10 December 2014 at 7:56PM

I am currently paying just over the minimum payments on those as I am now in employment. During the time period I was unemployed I struggled to pay the shop direct debt. I've tried looking into consolidating just the shop direct debt but having no such luck. It's just their debt I am struggling to pay and that's the £11000

Sorry for the confusion and many thanks for your advice.

beemer1 · 14 December 2014 at 4:54PM

I expect to be in the fortunate position next year of selling the house which will release more than enough equity to pay off existing DMP but the "more than enough" bit worries me as I'll have a lot left over - have people in this situation been hassled to provide information about how much is available? I guess creditors could see the amount the house has sold for but assume they don't know the amount of the mortgage redemption. Can it influence decisions on F & F amounts? I regularly get letters from a couple of creditors already offering 50% discount (sold on debt to 3rd party) if I can pay now or over 3 months so my thought was to try to aim for 50% on what's remaining once I'm all settled with the cash in the bank!!

fatbelly · 14 December 2014 at 9:48PM

beemer1 wrote: »

I regularly get letters from a couple of creditors already offering 50% discount (sold on debt to 3rd party) if I can pay now or over 3 months so my thought was to try to aim for 50% on what's remaining once I'm all settled with the cash in the bank!!

That sounds like a good plan.

Make sure you are not banking anywhere connected to your debts.

And start a bit lower than 50% to give you room to negotiate.

sgx.saint · 16 December 2014 at 7:00AM

Hello.

I am about to kick of the process of making F&F offers to four long term creditors.

These debts are from 2006/2007 and I have been on a self managed debt management plan since defaulting on these debts all that time ago.

I have faithfully repaid pro-rata repayments every month since defaulting and these debts/defaults no longer show on my credit file as I now have a healthy credit rating.

The rationale behind the F&F route is due to the fact that within the next year I would like to take out a mortgage and even though these debts do not show on my CRA file, they do still exist and would need to be declared.

As the debts are old, the CCA are probably not up to scratch and I do remember looking into this many years ago, but I can't remember the outcome.

Either way, I feel I will be in a pretty strong position to negotiate a low settlement amount.

It will currently take me another twenty years or more to clear the remaining debt so I am hoping this fact combined with the age of the debt will help.

A family member has offered to help pay off the outstanding debts, at a reduced amount and I will draft up a F&F letter this week, specific to my circumstances.

I plan to include reference to poor CCA paperwork, FCA guidance, the rate at which it will take me to repay and the fact that the money is only available for a limited time and is to be provided by a family member. I've seen the template letter on the National Debt website, is there anything else worth including in the letter to make sure it is water tight?

Also, two of the creditors are debt buyers, I received letters from the original creditors years ago stating the debt had been sold to the respective companies, so I should be fairly okay dealing directly with them, though is it worth asking them to prove they are legally able to accept F&F as the debt owner?

Also, two of the creditors are being represented by DCA, is it worth negotiating with the DCA or should I bypass them and go straight for the original creditor or debt owner if the debt has been sold?

Any other advice?

Full and final settlement help thread

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