Loan Settlement

MickH

Hi,
I owe Sainsbury's £4700 on a loan I have with them. I received a letter last week offering to settle the loan for 60% which is roughly £2850 if I pay it all this month or 70% if I pay it over 3 months which is roughly £1100 a month.

Having sat down and figured things out I can just about manage to pay it off this month if I borrow £500 from a friend, and then be pretty tight for the next month. What I want to know is whether or not I should offer them less? Is it worth telling them I can afford to give them a one off payment of say £2000 to settle and see what they say?

Thanks for any advice

studiorex

From what I've read on these boards before now, it will be unlikely to succeed at your proposed amount. People have advised taking a punt on 50% of the outstanding balance. Remember to ask Sainsburys to mark the loan as being repaid in full on your credit file.

DGJsaver

sorry to hijack , i owe egg £1900 on a loan , never missed a payment , is there a way of calling thme and offering x amount to settle ? is there a forumlae to working out what they may accept ?

It is at 10.9% and runs till june 2010

Cheers

p.s sorry OP :beer:

studiorex

Googled 'full and final settlement' and came up with this.

http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=24_full_and_final_settlement_offers

Hope it helps

MickH

£2350 it is then!

I've only been offered this deal because the loan is seriously in arrears and if they don't get any money from me then they'll sell the debt to another agency, which will be for considerably less than £2850.

Thinking about it I'm going to offer £2k and see what they say, they can only say no!

DGJsaver

Ahh so i hav eto default to get a decent settlement amount ??

MickH

pretty much! I wouldn't recommend it though!

dane-katie

i would offer them 2k and see what happens if they say no they say no and try to come to some arrangement but as from experience if you make an offer on a defaulted account you can come to some arrangement there and then works best if you have your debit card handy or say will send a cheque the same day

Good luck!

MickH

Offered them £1700 and they accepted it! I should have offered less! Considering I could have paid the £2800 they asked for that's quite a result! I told them I can pay it at the end of the month when I get paid and they were fine with it.

I would say anyone else in the same situation offer a really low amount and see what they say

_Andy_

Fantastic - and in the meantime those of us who manage our finances and keep to the terms of our credit agreements will pay the price in higher rates. Great.

MickH

Andy I'm pretty sure there's something on here in the etiquette guide about not being a tw@