Settlement figures.

fredboris

I'm currently on a DMP with the CCCS as only have about £6.5k outstanding . Now i'm due a bit of a bonus in march from work and with a bit of frugal saving i reckon i could get in a position to offer full and final settlement offeres, my question is this, what would a typical settlement offer be? 50% of balance ? 70% of balance? Even if i only manage to get rid of my biggest 2 debts it would make a real indent in to my debts.

Deep_In_Debt

hi
From my experience on this, I have got better settlement offers when the debts have been passed to DCA's. The original creditors would accept nothing less than 70% whereas I cleared a couple with DCA's at 45% and 55%.

Are your debts still with the original creditors?

fredboris

No there not there all on at least there 2nd DCA

tallyhoh

My OH was offered settlement of 50% on a £30,000 + loan without even asking.

Try 30% & work your way up. Dont let them know you may be in a position to offer more though.

Deep_In_Debt

Ok, if they are on at least their 2nd DCA's then you may get a better settlement figure.

I'd suggest starting very low as Tallyhoh says at say 30% and working your way up if you have to.

National Debtline has a good standard letter you can use and also some good advice on their website. Send it in writing only and don't send any money until you have confirmation in writing.

Good luck.

k993802

To give you an idea - I settled the following all with the original banks after being on a DMP for 9 months:

HSBC CC - 27% of balance
Capital One CC - 50% of balance
MBNA CC - 50% of balance

2 years on and in the midst of this 'credit crisis' i'm looking to clear many more at sub 50% of balance figures.

Personally, I'd start low... (But i'm no expert!)

Good luck!

fatbelly

I think this is all good advice. Since the credit crunch started to bite, I've noticed more creditors writing with F&F offers at lower levels. I've seen 25% from BLS (Lloyds) and 15% from AK.

No harm done in starting low - you can always go up.