full & final settlements?

emma126

hi, and sorry if i start to ramble a bit, i'm great at getting into debt but dont know much about getting out of it!!

my partner and I owe money to several creditors. I have just sold a flat that I owned jointly with my mother and I want to clear my debts with the money, but i'd prefer to offer F&F rather than pay the full amounts isywim? as the money is half my mums (although she would rather us clear our debts than have the money herself bless her :A)

anyway, some of our debts are with DCA (moorcroft mainly), one is with the bank still (barclays) and a couple with the bank's in house debt collectors (mercer for barclaycard and metropolitan collections for HSBC). Will all of these people take offers of F&Fs or do you think some would want the full amount repaying? also, my mum has told me to write and ask them for a settlement figure but im wondering if i should go in with an offer first as if i ask them they might just tell me they want the lot paying?!

heres an approximate list of what we owe

hsbc/metropolitan - £2400
barclaycard/mercer - £7000
barclays - £4000
and some others with moorcroft etc for about £500

any ideas on how much i should be offering them for F&Fs? and is there a template anywhere?

thanks a lot

emma

fairydiamond

See this thread, and good luck:

https://forums.moneysavingexpert.com/discussion/692741

gargrave50

Barclays/Barclaycard are renowned for being very against F&F offers.

F&F's are usually only successful for those who have entered a debt management programme and are paying very nominal amounts on a monthly basis, with no hope of every repaying the full amount owed. For those with recent arrears or who are have been making payments - F&Fs are unikely to be entertained, as the creditor knows you just don't want to repay the full amount with having any justification for not paying what you rightly owe.

emma126

thanks to both of you, i called MCA today about my loan and they offered me a reduction. if i pay by the 15th they will settle at £2100. just waiting on my bf to check with barclays.
i should have added that we have been on dmps and paying smallish amounts. now due to me being out of work (and 23 weeks pregnant, unlikely to get another job before i have the baby!) we cant afford our repayments so its either settle now or the payments go down even further.
thanks again

elfen

Don't forget to get the DCA to put it in writing the amount of the full and final settlement, and that they will not chase you for the remainder...nor will anyone else.

emma126

yeah, ive requested that they send me a letter saying theyll change any credit reference thingys to settled and send me a letter with the amount, i wont be paying until the letter arrives!

fatbelly

emma126 wrote: »

Will all of these people take offers of F&Fs or do you think some would want the full amount repaying? also, my mum has told me to write and ask them for a settlement figure but im wondering if i should go in with an offer first as if i ask them they might just tell me they want the lot paying?!

In your situation, they can all be persuaded to take a reduced sum eventually. It may take some time but it's worth doing.

Don't ask them what figure they are thinking of. You should write to them (use the National Debtline letter) and tell them what you are offering. You may want to add a rider to the effect of 'as funds are limited I can only hold this offer for three weeks. After this time the offer will be made to another creditor'

Remember you can always go up so start low. Anything can happen. I once got a straight accept on a 22% F&F where there was no default and the debtor was a homeowner! And that was Barclays.