Full and final settlement figures

milliejon

I've recently stopped smoking and wanted some advice or thoughts on what I should do next.

I will be saving £136 per month by not smoking. However, it's probably more than that. So many times I would go to the shop to get cigs and then end up buying chocolate or crisps too.

My first idea would be to pay off my overdraft. Then, when that's paid off, to pay off my smaller debts. They are:

Adams Storecard = £233.51 (monthly £4.09)
Debenhams Storecard = £105.10 (monthly £1.84)
BHS Storecard = £194.78 (monthly £3.41)
Mothercare Storecard = £246.40 (monthly £4.32)

I have had all of these debts on a DMP for around 20 months now all with interest and charges frozen. The cards with Debenhams, BHS and Mothercare are all with GE Capital Bank, so I know if I were to pay them off, I'd have to save enough to pay them together.

Anyway, my question is would you do as I suggest and pay the overdraft first, then pay off Adams, and then the other cards? Also, when I've saved enough to pay off the cards, should I contact them to ask for a full and final settlement fee? Does anybody have any idea how likely it will be that they will accept a reduced amount? Also, is there a template letter anywhere that I can use to contact them?

Thanks in advance for your help.

Broken_hearted

Yes ask them for a full and final settlement, offer around half and see what they come back with. Anything you save is a bonus. Good luck.

fatbelly

Agre with brokenhearted - you make the propsal.

There's a factsheet here with a sample letter at the end of it.