Full and final settlement help thread

somuchindebt

Twins wrote: »

Just re-posting again hoping it gets spotted. Also, I had a thought is it worth offering F&F when my debts should be cleared in 6 years if I continue to pay them on the DMP? With F&F the default stays on your record. If I pay the agreed amounts via DMP will this look better on the credit file?

Thanks again everyone!

Hello, how did you get £500? Is it one off thing or are you saving? If you are saving some money every month maybe it would be worth holding off until you can save at least £2k and offer this pro-rata to all your creditors? They will probably notl accept but some of them might be willing to accept less that the others and you can negotiate? At least you give them all opportunity to get lump sum, rather than treating some preferential? It may not be the best solution if you are likely to spend the money on something else, though.
I don't know what is best with regards to your credit file, certainly settled in full would be best. But difference between being on DMP and partially settled debts might be minimal. I have no experience on this, so am probably wrong.

catandy

I have just negotiated a settlement figure with aqua card held by a DCA - 70% discount so I have settled a 1697.47 debt for 509.22 - happy with that

Twins

somuchindebt wrote: »

Hello, how did you get £500? Is it one off thing or are you saving? If you are saving some money every month maybe it would be worth holding off until you can save at least £2k and offer this pro-rata to all your creditors? They will probably notl accept but some of them might be willing to accept less that the others and you can negotiate? At least you give them all opportunity to get lump sum, rather than treating some preferential? It may not be the best solution if you are likely to spend the money on something else, though.
I don't know what is best with regards to your credit file, certainly settled in full would be best. But difference between being on DMP and partially settled debts might be minimal. I have no experience on this, so am probably wrong.

Thank you for the advise. I got the £500 from some shares I had and sold them. I want to pay off the some of the debt so wasn't sure if my approach was best. I'm also trying to save to try and hit the others when ever I can get enough together. Onwards and upwards

fatbelly

Twins wrote: »

Hi everyone, it's been a while since I've posted. I've been quietly paying my DMP each month but am anxious to start reducing the number of years I've got left on DMP. According to SC, I'll be debt free in Jan 2023 but I hate the thought of having to wait that long. I've got £17,388 left to pay.

So I'm after some advise please regarding F&F payments and if this is a sensible choice? I've got a couple of smaller debts that I thought I could chip away at first e.g.:

NCO Arrow - £485
Santander Credit - £575
Link - £1450
etc...

Then the largest two:

PRA Group - £3560
Westcot - £2989

I was first considering paying the NCO Arrow one and offering £300. Would this be a sensible approach? I have around £500 could use to pay towards some debts but would a F&F work best or just use the £500 to pay off the larger debt?

What other things should I be aware of? I understand that if I offer F&F then the credit file is makes as partially settled and remains on file for 6 years which isn't great but I really want to clear these debts.

Any advise would be most welcome!

Thank you all!

Hi Twins

Sorry - didn't spot your post earlier.

I wouldn't worry about your credit report - these are probably showing as defaulted and will stay for 6 years.

F&F deals are definitely a sensible and cost-effective way of using any lump sum you can generate - and with 6 years still to go on your dmp, they should be open to offers.

Try offering the 3 smallest 30p in the £ (in writing, using the National Debtline letter) and see how they react.

Weakmoments

So after reading this forum you lovely lot have inspired me, and I have sent my first full and final settlement offer.
I'm currently on a DMP with Stepchange due to end 2035 eeeeeek. I have received some ppi again through your inspiration. So have bit the bullet and made an offer of 167.00 which is 30% of the osb. I decided to start with the smallest debt first and they are currently receiving £5/mth.
Here is hoping the accept and build my confidence to tackle the next one.

fatbelly

Weakmoments wrote: »

So after reading this forum you lovely lot have inspired me, and I have sent my first full and final settlement offer.
I'm currently on a DMP with Stepchange due to end 2035 eeeeeek. I have received some ppi again through your inspiration. So have bit the bullet and made an offer of 167.00 which is 30% of the osb. I decided to start with the smallest debt first and they are currently receiving £5/mth.
Here is hoping the accept and build my confidence to tackle the next one.

That's good.

A 18-year dmp is a long time. Are you sure none of the insolvency options would be better?

[Deleted User]

fatbelly wrote: »

That's good.

A 18-year dmp is a long time. Are you sure none of the insolvency options would be better?

Weakmoments, I'm surprised SC recommended a DMP when it's going to take you so long to complete it. I was led to believe when I started mine that they like them done and dusted in less than 10 years:eek:

Weakmoments

Thanks Fatbelly I know an VIA would be a better option but I suffer from bi-polar and would just get back into debt if I wasn't well. I know it sounds like an excuse but that's how I got in this mess. So at the moment I feel safe with the 18 year thing.

Weakmoments

They suggested an IVA but I didn't want that due to my mental health. They didn't say it had any time limit. I have already been on the dmp for 3 years and all my creditors have agreed.

silentmike486

Hello. I have a small debt with EE, its been ongoing for a couple of years. Their debt company, DLC, offered me "full and final settlement at 50%", which I duly accepted. However on checking my credit report via Equifax, the debt is still present but has been halved. It remains in default. I have since contacted DLC, who say they have handed it back to EE. I contacted EE, who say that the other 50% is still due for payment and will remain as default until its paid, at which point the account will be "satisfied".

I have a couple of questions - Who can I go to, in order to sort this out properly? I am in contact with the Credit Referrals team at EE. I may take it to their complaints department too, but I've found the whole EE experience to be awful.

Secondly, if I pay now, and my account becomes "satisfied", is this much different from being "settled"?

Thanks for your help

Mike