Making Full & Final Offers: Issues

Desperate_to_be_debt_free

Have decided to contact one on my creditors. Have a debt of £295 with Studio which has been passed to iQOR debt recovery services. Have just penned a letter offering the £98 F&F settlement. Hope they are going to accept!

GeorgeUK

MyLastFiver, really not sure that it would make much of a difference in the longrun. Would need to look into that i think. What would happen if one of the creditors made you an offer? Should someone turn it down because the default wouldn't be marked as settled?

I would try to get the default removed as part of any F&F if you were to do one. Have you looked to see if the defaults were properly issued? I don't know much about defaults but you might be able to get some info from some of 10past6's posts.

I'd also do a search on the forum for mortgages and defaults - there will probably be quite a few posts about this. Will try to do a search myself to see how much difference there is between a settled or partially settled default.

Nukumai

MyLastFiver wrote: »

The advice I received on the previous thread was to try to get my creditors to accept lower offers in full & final settlement.

I had not considered this before because 1. The moral imperative to pay in full

Easy for me to say, and maybe I'm 'old skool'...but the moral imperative would probably compel me to pay in full if I were in your situation.

Having said this...there are other options with ostensibly the same end result. Eg. keep some of it aside locked into a suitable term deposit, pay lump sums off of the debt with the balance, and continue with the regular payments (reducing the term of the payments). Or a variation on this.

Good luck with whatever you decide.

gonzo127

as to moral imperative i think the general feeling on this site and other than the idea of saving money you have to take into account the amount of the money each company will have taken in interest,

for example i worked out (as shock tactics to get her to change) my wifes credit card with a 3k limit on it, over the period of time she has had it she has actually paid roughly £10,000 of interest!

MyLastFiver

Nukumai wrote: »

Easy for me to say, and maybe I'm 'old skool'...but the moral imperative would probably compel me to pay in full if I were in your situation.

Aye. I can see both sides. And yes, I am a bit "old skool" about money these days.

The thing is, most of my balances are still with the original creditors (HSBC, Lloyds, Barclaycard, Egg), they know I'm a homeowner and my DMP payments are over half of my contracted min. payments anyway. I'm unlikely to get a good F&F deal from those boys.