We’d like to remind Forumites to please avoid political debate on the Forum.

This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide

Full and Final Settlements

Hi Everyone

I have a question relating to full and final settlements.

I am currently in 17k worth of debt and my outgoings exceed my income by quite a bit. I have spoken to all my creditors and provided them with an income and expenditure, some credit card companies have been most helpful and agreed a very low payment and a nominal 1% interest rate, whilst others have said they can't work within my budget and referred me to payplan.

My question is that now all my creditors know my financial situation as I supplied my income and expenditure and some are in payment plans, can I start approaching them for F&F offers ? My mum is giving me some cash to do this but it will only work if they accept 50% or less. I have seen a lot on here about the accounts having to be in arrears with defualts etc. I am not currently in arrears as god knows I have managed to keep above water, but they know my sitaution and with overtime ceasing etc my financial circumstances are likely not to imoprove. Should I write to them now with an offer or wait until I am in arreas or the debt is sold off ? I just want it sorted and my mum can't offer this money forever. FYI - some debts are older than 3 years and some are around 1 and some 2 years. The sainsbutys debt is the oldesta nd they can't even find the cca, but I have started a new thread for that.

Any help , successes on this would be really appreciated.

Many thanks

Jono

Comments

  • cifpower
    cifpower Posts: 6,502 Forumite
    F&F will only be accepted by companies if you have been delinquent in your payments and have defaulted. As a result your credit will be trashed for 6 years
  • Thank you for your response but can I ask on what basis this advise is given ? Personal circumstances, why would it be trashed for 6 years ? I thought they quoted satisfied on your credit record rather than settled, is it that what trashes it for 6 years ? I only ask this as I want constructive advise/suggestions, your response was quite dampening, and could do with expanding upon.

    Thanks
  • Still 6 years. A satisfied default is as good as a open default
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 353.7K Banking & Borrowing
  • 254.2K Reduce Debt & Boost Income
  • 455.1K Spending & Discounts
  • 246.8K Work, Benefits & Business
  • 603.3K Mortgages, Homes & Bills
  • 178.2K Life & Family
  • 260.8K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16K Discuss & Feedback
  • 37.7K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.