wiping out debt!!

annelise29

Hi does anyone know anything about settling debt by paying off a lower amount in a lump sum? I had a credit card which i owed £4300 to and they offered to wipe off the debt if i paid them £1200.

GeorgeUK

If this is a full and final settlement offer, then you may be able to take it as long as you get written confirmation that you will not be held liable for the rest of the debt - before you pay the money.

If they have offered a partial settlement, then this is just them asking you to pay a lump sum and will be back to hounding you for the rest later.

There is a good letter on the national debtline website for making full and final settlement offers. Also on the board here somewhere.

Paying 28% is a pretty good offer, but only agree if you can afford it.

oasisfeverish

Annelise29,

First of all you don't state if the offer has come from the original lender of the credit card or a Debt Collection Agency (DCA)?

If the original lender, then ensure they confirm their offer in writing clearly stating that the amount is Full and Final, and that the matter of the remainder of debt be closed and not pursued. Also ensuring that any reference on a CRA is marked satisfied.

If it is a DCA, first thing is to ensure they have the rights to claim off you, by sending them a 'Prove it' or 'CCA request' letter. And even then I would still contact the original lender to pay.

How old is this debt?
When did you default?