Early Settlement - will they accept it?

davels

Hi all

Just a speculative question really... I've got about 30k of debt left now, it was as high as 45k.. Ouch. I'm with Payplan and have been now for about 14 months, I've never missed a payment. All but Natwest CC have frozen interest, with the interest charges on there I'm paying off about 10pence per month on it... but they refuse to change it.

My debts range from a 9k Egg loan down to general 2-4k credit card debts.. a fair few of them.

At the rate I'm paying them off, I'll be debt free by about 2010-2011...

My question - I work in the oil industry which is having a huge peak at the moment and I'm due a hefty bonus in the next 6 months... Although I'd like a holiday somewhere hot, I think it'd be better spent shaving some years of my debt. My sensible side doesn't often take precidence... if it did, I wouldnt have gained 45k worth of debt.

If I was to offer early settlement, whats a reasonable amount to offer based on an typical 3k of debt? Would they be more likely to do it if I had been missing payments??

Thanks in advance, you helpful helpful people.

Dave

skintchick

I think, if you have never missed a payment, that they won;t accept a settlement, but someone will correct me if I am wrong.

file_wizzard

They probably will as it is an administrative / financial nightmare for them to keep accepting reduced payments.

Some may go as low as 50% although 60 – 70% of total outstanding balance is normal.

Definitely do offer anything more than 70% this is the accepted industry level

asandwhen

Start off low say around 40% - This will not be accepted but is a starting point - then slowly creep up and meet in the middle - I would say you'd probably get away with paying 60%-65% depending on company (better chance of getting a good settlement figure if it is owned by a debt collecting agency)