Full and final settlement help thread

krazykaz64

would 30% be a good starting point ?

sourcrates

krazykaz64 wrote: »

would 30% be a good starting point ?

I would say so, start low, you can always negotiate upwards if need be.

Don't expect your first offer to be accepted though.

It's all a matter of negotiation.

January2015

krazykaz64 wrote: »

would 30% be a good starting point ?

I seem to remember another user (Brogden, I think) managed to get settlement of one of his debts at 25%. I think that was M&S (was a long time ago I read that so it may have been another creditor). He started at 25% and negotiated from that point. He totally expected to be knocked back at that first offer, but one of the creditors accepted it.

fatbelly

krazykaz64 wrote: »

would 30% be a good starting point ?

Yes

Settlements below that are not unheard of but they are rare.

Some examples here

http://forums.moneysavingexpert.com/showpost.php?p=69978335&postcount=1179

Pincers

Hello! I have been on a DMP for six months now, via Stepchange. I will have a bit more money for the pot about a year from now, as my student loan will be paid up, giving me £120 a month extra...but in order to cover my other expenses for the moment I am paying roughly half the amount of my contractual payments, split over seven cards (I know, I know).

I have been sent default notices for a couple of them, one of which does mention something about settlement figures, but nonebof them are with third party collections agencies yet.. Is this now the point at which I can start negotiating settlement figures? There is a chance I will get a bonus in a couple of months and I'd really like to use this to cut some if the debt and start rebuilding my file sooner. Do I need to contact Stepchange first? Do I need to only offer a sum I can pay all in one go(my worry is that I will offer my maximum of £x, they would only accept £y, but will say that I need to bring the account up to date if I have £x handy)? What stage do I need to be at with the account to discuss settlements?

I really want to avoid CCJs and try and cut down what I owe where possible, so any advice would be great.

Pincers

The debts are all enforceable, BTW.

fatbelly

Pincers wrote: »

Hello! I have been on a DMP for six months now, via Stepchange. I will have a bit more money for the pot about a year from now, as my student loan will be paid up, giving me £120 a month extra...but in order to cover my other expenses for the moment I am paying roughly half the amount of my contractual payments, split over seven cards (I know, I know).

I have been sent default notices for a couple of them, one of which does mention something about settlement figures, but nonebof them are with third party collections agencies yet.. Is this now the point at which I can start negotiating settlement figures? There is a chance I will get a bonus in a couple of months and I'd really like to use this to cut some if the debt and start rebuilding my file sooner. Do I need to contact Stepchange first? Do I need to only offer a sum I can pay all in one go(my worry is that I will offer my maximum of £x, they would only accept £y, but will say that I need to bring the account up to date if I have £x handy)? What stage do I need to be at with the account to discuss settlements?

I really want to avoid CCJs and try and cut down what I owe where possible, so any advice would be great.

So you'll have some extra money in a couple of month's time? Is that definite?

Maybe now is a bit early to be saying 'I can settle this for £x' if you haven't yet got £x. Give it another month or if it's uncertain, wait until you have it.

Don't contact stepchange and when you write the letter make it clear that the lump sum is coming from a third party

Pincers

Not definite yet, no - I was just wondering if this would be an option should that come through.

If it does come through, can I negotiate with creditors or would I have more success waiting for it to be sold on to a collector?

sourcrates

Pincers wrote: »

If it does come through, can I negotiate with creditors or would I have more success waiting for it to be sold on to a collector?

You wont have much luck with original creditors.

Chances are a lot, lot better with collectors, as they buy debts for pennies, so can afford to give bigger discounts.

fatbelly

sourcrates wrote: »

You wont have much luck with original creditors.

Chances are a lot, lot better with collectors, as they buy debts for pennies, so can afford to give bigger discounts.

That's generally true, though MBNA are OK.

Whambam's list gives a good idea

http://forums.moneysavingexpert.com/showpost.php?p=69978335&postcount=1179

You could definitely give it a go - if you don't ask you don't get