Full and Final settlements, advice needed!

Knocked_down,_but_not_out

Hi

Some advice needed.

It all went wrong for me in 2007, so I am working on getting back in the black.

For the past 12 months I have been making regular payments on 2 credit cards and 1 loan as follows:

Barclaycard: 7k, Paying £81 pm
Marks and Spencer: 10k paying £55pm through moorcroft
Egg:12k, paying £10 pm

Total: 29k

All are on frozen interest.
I cant afford to increase payments (despite their requests;))

I have an option ( from a family member) of about £12k, to try to get Full and Final settlements.

Whats the best way to approach and make full and final offers? What amounts should I offer based upon the profile above?

Help appreciated!

Deep_In_Debt

Hi
Are you making reduced payments?

I've found that I have got a better settlement when the debts have been sold on to DCA's. The Original Creditors would accept nothing less than 70% whereas a DCA would accept 40% as they buy the debts for pennies in the £ and probably made a tidy profit on that 40%

To be honest, not sure 12k is going to clear all your debts with a F&F but you may be able to clear some and then pay more towards the rest to clear them more quickly.

National Debtline website has a good template letter you can use for F&F's. Make sure you get everything in writing though before paying any money.

Knocked_down,_but_not_out

Hi, thanks for the comments

Yes the amounts I am paying are significantly less than they should be, I sent them justification by means of income / expendature sheet I got off national debt line.

The Marks and Spencer one is with a DCA (Moorcroft), the others are still with the original lenders.

I haven't heard from Egg either in writing or by phone since I originally set the plan up12 months ago, is this common?

I was thinking of trying to clear 2 of the 3, then pool the money saved and pay off the third.

I will send the letters and see how I go - not a lot to loose really :rotfl:

Deep_In_Debt

It's not uncommon for creditors not to contact you - I've not heard from MBNA for about 10 months now since I set up my dmp. Some will hassle constantly (don't get me ranting!) and others don't.

I suggest, start low - try 30% and then it leaves room for negotiation. Expect a bit of to'ing and fro'ing though. One thing you could say is that you've been given this money for the purpose of clearing your debts and if they don't accept your offer, then the money and therefore the offer will be withdrawn within...say 28 days and see what happens. I tried it and it did work - DCA nearly took my arm off for the money!

SolicitorMidlands

I have just settled one of my family member's debts for 40% with a DCA. I started at 25% and negotiated. I said the money was only available for a short period of time. Tell them how many creditors there are, that you are making the same offer to all of them and that you can pay it immediately (of course after you have received written confirmation they will accept on full and final and mark account as fully satisfied)

Good luck!