Full and final settlement help thread

marzom

Hi all,

A fascinating thread. After all the interest I have paid over the last 20 years, I think a full and final settlement seems justified.

Here is my question, I started on a DMP in June 2012 and now have £57,000 left (started at £58,000 but NatWest added another £700 in charges before selling the debt on!). My debt free date is 2023.

One of my relatives may be able to lend me £22,000, but I would need to start paying them back straight away (the same amount as my current DMP payment). £22,000 equates to 38.5% of my current debt.

Is it feasible for all my creditors to accept this percentage as a full and final settlement ?

Thanks

Stuh

I have managed to settle Capital one for 55% which is about average for them given what i have read on other threads! Frederickson keep saying 75% but i keep saying 40% i think they will not budge tbh. Will keep all updated as a thread like this helps all in the same position with the various companies/debt collectors! Thanks

freshstart11

Motermille settled for half of what i had left which was !!!!!! all but hey saving is a saving shouldnt have left it so late.

Unclebuck PDL (I know, i know) settled for 35% of debt ....only small debts so far but happy.

Just waiting for wescot to come back to me.....

sickasachip13

Hi

Marzom - it really is down to the individual creditor when negotiating. As a loose rule though, if the debt is still with the original creditor you will probably struggle to get as low a settlement figure than you *might* get from a debt collection agency (DCA). That said, I have settled with two original creditors for less than 40%. The key is to ensure you do the process properly and ensure the agreements you might make are watertight. :beer:

Stuh - I reckon some of this process is down to persistance. Is it worth you going up by literally maybe 1% just to present a slightly increased figure in front of their noses? Well done on Cap One. :T

Freshstart11 - excellent news on your settlements, best of luck with Wescot. :T

My only news is that Metropolitan have come back to me and asked for an SOA, just as Robinson Way did. Hopefully they'll both be feeling the christmas spirit :snow_laug
SAAC

dmptofreedom

Hi

Just to mention that I have had a good experience with Payplan Settlements team. Thoroughly recommend them. Although I imagine it would have been just as easy to go direct.

Results so far

VW car debt from £900 to £300 - good result - now paid
Hire car debt from £2207 to £220.7 - paid amazing result
Barclay card from £3700 to £2400 - fair result - now paid

I'm now saving to pay my NatWest credit card as it's on my credit report. Payplan say that there are no decent settlements being offered at the moment but wondered if any of you have got a good result with them recently.

Cheers

Darren

19rusty66

Hi all, it's been a while

I recently offered £7500 on £22500of debt through Payplan settlement team. Unfortunately all the creditors are looking for around 80% so far. I've now withdrawn the offer and reduced my payments from£320 to £50 as have had a number of bills in for upkeep of house (i've spent nothing on the place for 4years now and I really need to carry out some maintenence)
I'll have to keep it at £50 for the next 5 months or so. I'll try again January. This time I'll go it alone though,

marzom

Hi all,

I have contacted StepChange to advise them that I have 40% max to offer my creditors (£23,000 for a debt of £57,000). They have said that they can deal with this for me but if I want to start with a lower offer than 40%, I have to do it myself.

I am worried that if I go with StepChange's settlement team with 40% then they will get counteroffers from my creditors for a higher amount, which I cannot afford, whereas if I go lower than 40% then I may be more likely to be able to settle at 40%.

Has anyone had any experience of this?

fatbelly

marzom wrote: »

Hi all,

I have contacted StepChange to advise them that I have 40% max to offer my creditors (£23,000 for a debt of £57,000). They have said that they can deal with this for me but if I want to start with a lower offer than 40%, I have to do it myself.

I am worried that if I go with StepChange's settlement team with 40% then they will get counteroffers from my creditors for a higher amount, which I cannot afford, whereas if I go lower than 40% then I may be more likely to be able to settle at 40%.

I agree with you. I settled a few debts for someone at around 30% a few months ago.

So I think you're right to have a go yourself.

sickasachip13

Hi Marzom

I agree with Fatbelly. I'm with StepChange but did some F&Fs myself and settled for less than 40% (these were relatively small debts though). Give it a whirl yourself - it's not difficult, you just have to be patient and persistent!

Have a look at the template letters on the National Debtline website and you can always speak to them for free for further advice too.

Good luck
SAAC

endoftherainbows

I have been a member for MSE for quite some time but due to being worried about 'attacks' regarding not facing up to my debt and other such unhelpful comments, I decided to adopt another user name for this query.

I have been self administering a DMP for a year now and due to illness within my family, I have taken my eye of the ball and have noticed some of my creditors have been charging interest :mad:

I may now be in the position of offering F&F settlements. I plan to offer 20% in the first instance. ( I know I am being cheeky) My question is should this be 20% of original debt or 20% of where it is now, in some cases a higher amount. Yes I am aware I can complain about interest being added but will take that argument on with those who don't accept settlements.

For your info and comment if you have had experience of dealing with of these creditors, my debts are currently:

MBNA £3972.39 sold to Aktiv Kapital
MBNA £2098.83 sold to Aktiv Kapital
Halifax £7330.77 Blair Oliver & Scott (not sure debt it is sold to them)
Halifax £1795.74 sold to iQor
HSBC £821.29 Buchanan Clark & Wells (acting for HSBC but in last letter of 13/12 stated willing to consider discounted settlement but stated I would not hear from BCW again???)
Barclaycard £3101.40 Robinson Way acting
Barclaycard £2141.02
HSBC £2150.30 BCW, same as above
Ulster Bank Personal Acc £2151.47
Ulster Bank Business £5187.69 - Debitask acting
MBNA - £2648.87 sold to Aktiv Kapital
MBNA £3642.52 sold to Aktiv Kapital
Barclaycard £3997.28 sold to Link

Any insight would be most gratefully received

Many thanks