Full & Finals

tequilabird
tequilabird Posts: 66 Forumite
in Debt-free wannabe
So I'm in a position where I have a lump sum of money to pay off my current debt. Firstly, as I'm with SC, do I have to go through them to do this? If not, what sort of figure should I offer each creditor? Is there any way to have defaults removed from credit file before the 6 year period? Looking to buy a new house and pretty sure I won't get a new mortgage with the defaults still there.
Lightbulb Moment: 18/01/2015 :j
Current Debt: 31,869.62 :eek:
DMP Start Date: 01/09/2015
DFD: TBC but sooner rather than later, I hope! :beer:

Comments

  • sourcrates
    sourcrates Posts: 28,833 Ambassador
    First Anniversary Name Dropper First Post Photogenic
    edited 9 March 2018 at 11:50PM
    Hi,
    Step change will not have the time or resources to negotiate as well as you can yourself.

    Start low, around 30%, you can always increase your offer, you can write or phone them to obtain the best deal, but make 100% sure any deal agreed is backed up in writing before you part with a single penny.

    National debt line have a template letter for just this purpose :

    https://www.nationaldebtline.org/EW/sampleletters/Pages/Full-and-final-settlement-offers-%28sole-name%29.aspx

    You could try to include default removal as part of the deal, but do not expect any of them to agree to this.
    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-letter
  • tequilabird
    tequilabird Posts: 66 Forumite
    So I have contacted all my creditors with offers. Have had one reply today from Lowell, who rejected my offer and said they would accept 80% of the total. Feeling slightly disheartened about it all now - what should I do? Send a counteroffer?
    Lightbulb Moment: 18/01/2015 :j
    Current Debt: 31,869.62 :eek:
    DMP Start Date: 01/09/2015
    DFD: TBC but sooner rather than later, I hope! :beer:
  • sourcrates
    sourcrates Posts: 28,833 Ambassador
    First Anniversary Name Dropper First Post Photogenic
    Do not fall at the first fence, its all a matter of negotiation, these things take time.

    You have to persuade the creditor you offer represents the best return for them, wait 6 months then try again.
    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-letter
  • tequilabird
    tequilabird Posts: 66 Forumite
    What happens if some of the creditors come back now and accept my offers? Can I pay these ones off and then leave the others till a later date? I know I should be fair to all of them so is that OK?
    Lightbulb Moment: 18/01/2015 :j
    Current Debt: 31,869.62 :eek:
    DMP Start Date: 01/09/2015
    DFD: TBC but sooner rather than later, I hope! :beer:
  • sourcrates
    sourcrates Posts: 28,833 Ambassador
    First Anniversary Name Dropper First Post Photogenic
    tequilabird wrote: »
    What happens if some of the creditors come back now and accept my offers? Can I pay these ones off and then leave the others till a later date? I know I should be fair to all of them so is that OK?

    Obviously do what you feel is best, don’t turn down a golden opportunity.
    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-letter
  • remote_control
    remote_control Posts: 625 Forumite
    First Anniversary First Post Name Dropper
    Have a look at Jwil's thread http://forums.moneysavingexpert.com/showthread.php?t=5624384
  • tequilabird
    tequilabird Posts: 66 Forumite
    Thanks - will do! Today I received an email from Wescot - I have 2 debts with them. The email states - Please note; our client will only accept settlements as Partial and not Full and Final. Payment of a partial settlement will result in this account being recorded as !!!8216;partially settled!!!8217; on your credit file. This information will remain on your credit file for 6 years from the date of default. If you are in a position to repay the full balance your credit file would be recorded as fully satisfied for this account.

    Is that OK? I thought I needed them to accept it as F&F?
    Lightbulb Moment: 18/01/2015 :j
    Current Debt: 31,869.62 :eek:
    DMP Start Date: 01/09/2015
    DFD: TBC but sooner rather than later, I hope! :beer:
  • January2015
    January2015 Posts: 2,369 Forumite
    First Anniversary First Post Combo Breaker
    tequilabird wrote: »
    Thanks - will do! Today I received an email from Wescot - I have 2 debts with them. The email states - Please note; our client will only accept settlements as Partial and not Full and Final. Payment of a partial settlement will result in this account being recorded as !!!8216;partially settled!!!8217; on your credit file. This information will remain on your credit file for 6 years from the date of default. If you are in a position to repay the full balance your credit file would be recorded as fully satisfied for this account.

    Is that OK? I thought I needed them to accept it as F&F?

    Full and final is a bit of a misnomer. It is actually Partial and Final settlement. You will be settling for part of the outstanding balance, i.e. making partial settlement, and they will confirm they accept that partial settlement to .... well to settle the account.

    That's normal :)
    DFW Nerd No. 1484 LBM 07/01/15 Debt was £95k :eek: Now debt free and happy :j
  • tequilabird
    tequilabird Posts: 66 Forumite
    Success, albeit one of my smaller debts! Nationwide have agreed to accept £158 for a £635 debt - 25% :) Other are being less helpful lol.
    Lightbulb Moment: 18/01/2015 :j
    Current Debt: 31,869.62 :eek:
    DMP Start Date: 01/09/2015
    DFD: TBC but sooner rather than later, I hope! :beer:
  • Deep_In_Debt
    Deep_In_Debt Posts: 8,579 Forumite
    Photogenic First Post First Anniversary Mortgage-free Glee!
    I negotiated a lot of my debts for about 40%. It involved a lot of back and forth and quite time consuming but worth it in the end.

    One thing that I did request in my letters to them, was to confirm that they would not sell the remainder of the debt to a third party at a later date and that I would pay them once they had confirmed this in writing to me.
    Debt 30k in 2008.:eek::o Cleared all my debt in 2013 and loving being debt free :)
    Mortgage free since 2014 :)
This discussion has been closed.
★ ★ ★ Meet your Ambassadors

Categories

  • All Categories
  • 343.1K Banking & Borrowing
  • 250.1K Reduce Debt & Boost Income
  • 449.6K Spending & Discounts
  • 235.1K Work, Benefits & Business
  • 607.8K Mortgages, Homes & Bills
  • 173K Life & Family
  • 247.8K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.9K Discuss & Feedback
  • 15.1K Coronavirus Support Boards