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    • LessonsLearnt
    • By LessonsLearnt 12th Mar 18, 10:32 AM
    • 1Posts
    • 0Thanks
    £30k over 6 year old debts - settlement offers
    • #1
    • 12th Mar 18, 10:32 AM
    £30k over 6 year old debts - settlement offers 12th Mar 18 at 10:32 AM
    Hi everyone,

    - £30,000 total debt just over 6 years old since I defaulted (so no longer showing on credit file).
    - Paying £1 per month to the 8 creditors since I first defaulted (arranged by the help of a solicitor)
    - Financial situation has not improved over these 6 years and not likely to anytime soon (annual reviews with creditors)
    - All debts are now owned/managed by debt companies and have been for most of these 6 years. Most debts have been passed on to 2 - 4 times to different debt companies

    I have received a full and final settlement offer from a creditor (who have contacted me in the past with offers, which I have ignored). (Also, the debt was passed onto a debt company in 2011, which was passed on to the current creditor in 2013 - 5 years ago).

    The debt is for £5200, they have offered a payment of £1500. (previous offer was Nov 2015 for £2600).

    A relative has offered me some money to pay this, but not the full amount. Given the full facts above (total debt I owe, age of debts, £1 a month payment for over 6 years, debt has been sold on many times), what would you offer them? Would they accept £900?

    Here is my template letter (any feedback/suggestions on amending it would be appreciated too). Hopefully there are others with similar situations who have experience or who are looking for some advice like me. THANK YOU!

    Reference – XXXXXXX
    Account – XXXXXX Credit Card
    Current Creditor – XXXXXX Limited
    Outstanding Balance - £5200.00

    Dear Sir/Madam,
    I write in response to your letter dated 26/02/2018, which offered me a one time lump sum payment of £1500.00 to clear the full debt of £5200.00, and mark the debt as “nil balance, partially settled”.
    As you know I currently pay £1 a month, which I have done since I became unable to repay the minimum payments with Barclaycard many years ago.
    My mum has a small emergency fund, which she has offered to use to settle this debt for me. She understands that my financial situation has not improved over the years and would like to help me this little bit.
    My mum has £900.00 which I can offer as a one time lump sum, full and final payment to clear the full debt of £5200.00. This would be in exchange for the debt to be marked as “partially settled and nil balance”. No further payments would be due and the debt would be settled completely. Neither you nor any associate company will take any other action to collect or enforce this debt in any way and that I will be released from any liability.
    I can pay this immediately dependent on a written letter from you stating the above offer and your complete agreement.
    If my offer is accepted, I also request confirmation of receipt of the payment and the debt being settled once the payment has been made.
    I await your reply, thank you.
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