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Full & Final Settlements

Hello you little beauties

I am so pleased to have found this site - just getting my head into gear to start offering full and final settlements on a shed load of debt as we are re mortgaging - not enough money to cover everything though - we have around 50% of the outstanding debt total give or take a few pairs of shoes which are needed. ( Im only trying to make light of the situation - not being selfish!)

Does any one have any helpful hints or success stories on how to approach the F&F payment offers? I really want to get these poayments as low as possible. Is it true that debt agencies pay only 10 in the poiund for the debt? How can they justify chasing the whole amount? Plus interest pklus costs etc etc ? Please advise on my best course of action and how to stay positive about it all.

Thank you in anticipation for your helpful words

xx
Terriblesaver - hoping to improve!!! Unsecured debt ... £[STRIKE]57938[/STRIKE] £51453
Official DFW Nerd no 176
Reclaimed and won Capital One £224, Paragon £758, GE Capital £63 and £135
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Comments

  • I have no idea about full and final settlements but I'm sure someone here will.Would it not be better to pay off what you can on the debts and negotiate with the creditors to freeze the interest or reduce payments for the rest?I think if you post an SOA and how much your debts are and how much you have to pay them off you wil get more advice.

    edited to add that I know payplan and CCCS pay all the money you give them to the creditors-everyone else charges.
    Debts Jan 2014 £20,108.34 :eek:

    EF #70 £0/£1000

    SW 1st 4lbs
  • Firstly offer all of your creditors a pro rata offer. You will need to know –

    1) exact balance of each debt
    2) exact amount of money available (after shoe buying)
    3) the total of all the debts together.

    To work out pro rata payments you need to –

    Multiply the balance of each debt by the amount of money available then divide this figure by the balance of all debts combined. This will give you the offer to make to each creditor.

    Any of those that accept pay off. Any that don’t start again, if you offered 50% to all creds and 3 creds reject, offer those three creditors 60% of the balance, then 70% 80% etc, do this till all the money had run out, and then make arrangements for repayment with the ones left over.

    WG xx
    All comments and advice given is my own opinion and does not represent the views or advice of any debt advice organisation.

    DFW Nerd #132
  • Thank you hun - its all so bloody scary - gotta wait for the mortgage money to come in and then get all the balances - last time i tried to get them 0% were really unhelpful and debts had been resold and gone back to th eoriginator !!! Argh - is ot easier to just disappear????
    Terriblesaver - hoping to improve!!! Unsecured debt ... £[STRIKE]57938[/STRIKE] £51453
    Official DFW Nerd no 176
    Reclaimed and won Capital One £224, Paragon £758, GE Capital £63 and £135
  • Not a problem hun, also I forgot to mention you need to make the offers in writing as the plebs you talk to on the phone have no authority to accept reduced settlement under a “fixed figure” they are given by management.

    Nah way to complicated to disappear un ;)

    You jjust stick with us :)

    WG x
    All comments and advice given is my own opinion and does not represent the views or advice of any debt advice organisation.

    DFW Nerd #132
  • blt
    blt Posts: 241 Forumite
    What wonder girl is saying is right. I was in the situation a few years ago and wrote out a table with all the money I owed, to whom and then what they were going to be offered. I sent this to all of my creditors (on the advice of the CAB) so that they could see that they were all being treated equally. I found that most people did accept what I was offering. Good luck! And let us know how you get on:beer:
  • CLAPTON
    CLAPTON Posts: 41,865 Forumite
    10,000 Posts Combo Breaker
    are the debts all defaulted?
    how long ago did you default the debts
    do you know if they have all been sold on?

    better for you if they have been defaulted for a long time and better if they have been sold on.

    whats the current situation, are you on a DMP; is it a DIY or are you with a company?
  • Thanks for advice lovely people - have been with baines and ernst for over 3 years ... they are a bloody rip off but at the time ii was in the dark and thought it was the only way out. All of the debts have defaulted as they are now anciemnt - there is about 57k's worth of debt and around 25k to pay stuff off. they range between £250 to £9000.

    Its a mione field - personal;ly the less i pay the better but as they get their money regularly i am worried that they wont accept settlements and i will still be paying them in 16 years - i cant put my life on hold til im nearly 50!!!
    Terriblesaver - hoping to improve!!! Unsecured debt ... £[STRIKE]57938[/STRIKE] £51453
    Official DFW Nerd no 176
    Reclaimed and won Capital One £224, Paragon £758, GE Capital £63 and £135
  • CLAPTON
    CLAPTON Posts: 41,865 Forumite
    10,000 Posts Combo Breaker
    how much are you paying per month
  • all togther it £360.00 per month which is divided as a percentage bewteen them and 60 to B&E
    Terriblesaver - hoping to improve!!! Unsecured debt ... £[STRIKE]57938[/STRIKE] £51453
    Official DFW Nerd no 176
    Reclaimed and won Capital One £224, Paragon £758, GE Capital £63 and £135
  • CLAPTON
    CLAPTON Posts: 41,865 Forumite
    10,000 Posts Combo Breaker
    seems to me that if your paying the creditors 300 a month then it will take over 15 years to repay them off (57,000/3600)

    alternatively if you have 25,000 you would be offering 44% of the amounts

    i would suggest you offer something about 35 p in the pound as see what they say. do it in writing.
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