Agreeing a settlement

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Hi,

Looks like my family is helping me out with loan interest free to get out of ALL my debt, yes i know a veyr lucky boy with a great family!

But...... someone has told me that because me credit card and indeed loan debts have gone to credit collection agencies now as they are so old the original companies have "sold" the debt to them......so i have been told that i am well within my right to offer a settlement figure rather than offering to pay the full outstanding balance? They vary form £1,000 to £3,500.

Is this true? And also how often are these offers accepted? Also how much % wise as a guide should i be offering first time around as i presume they like to barter!

Any idea's? I know what i mean to say, hope it makes sense to you lot too!

Fanks!
Really struggling but want to face upto the debt at last! :confused:
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Comments

  • cifpower
    cifpower Posts: 6,502 Forumite
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    So I take it that you have already defaulted on your credit agreements and are now being dealt with by debt collection agencies? If so, then you should be able to pay a settlement figure. This can be anywhere between half and two-thirds of the original debt.
  • jonesMUFCforever
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    Does your family know that you have defaulted and also if you get away with paying less than the outstanding balances will you refund your family or spend it?
  • CLAPTON
    CLAPTON Posts: 41,865 Forumite
    Combo Breaker First Post
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    the amount they will settle for varies but depends a bit on

    how long ago you defaulted
    how much you are currently paying in relation to the debts
  • bournie
    bournie Posts: 23 Forumite
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    "Does your family know that you have defaulted and also if you get away with paying less than the outstanding balances will you refund your family or spend it?"

    Yeah they know i defaulted and got near to a CCJ, of course i would spend the difference, in fact I am trying to get final figures before they give me the money, then they can give me the correct sum first off.
    Really struggling but want to face upto the debt at last! :confused:
  • bournie
    bournie Posts: 23 Forumite
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    Sounds like i should offer about 1/2 of the debts and see how they react, should i do this verbally over phone or email?
    Really struggling but want to face upto the debt at last! :confused:
  • cifpower
    cifpower Posts: 6,502 Forumite
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    Best to do it over the phone
  • anotherpaul_2
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    I'd have thought a recorded delivery (possibly unsigned) letter.

    Whatever you agree, make sure you have it in writting before you pay them a single penny. If they later turn around and declare that you owe them the rest, you can produce (a copy of) the letter as evidence.
  • bournie
    bournie Posts: 23 Forumite
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    Well one says phone, one says letter! Anyone else want to make it a bit clearer for me?
    Really struggling but want to face upto the debt at last! :confused:
  • cifpower
    cifpower Posts: 6,502 Forumite
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    Do it on the phone and ask for written confirmation before paying is my advice
  • dolally_2
    dolally_2 Posts: 268 Forumite
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    The national debtline has sample letters. They should also have a calculation for pro rata payments.

    http://www.nationaldebtline.co.uk/england_wales/debt_advice.php#6

    The above should get you started. Keep everything in writing, keep a copy of everything and probably send recorded delivery too - good luck.
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