Final settlements, what is best way to negotiate?

LBaum

If I realized some of the equity in my home I could pay off my debts.
I want to downsize anyway and there are good practical reasons for doing this as well, like I could increase the value of the property to make a profit from the money borrowed. I can do the work myself and still live on beans, so it won't cost much and I've been gathering and saving materials for this purpose and most of it is on site already.

Supposing I did this and I was in a position to make a final offer to each of my creditors how do you begin negotiating a lower settlement free.

Before hitting me with a CCJ the creditor did ask if I wanted to offer 25% of the loan as a settlement.

hadleigh47

I have paid off some of my debts this way. Sometimes they will spring an offer out of the blue.
I think I managed to get some to settle for 30% but be aware some want the total amount paid off or 90%
Bearing in mind some of these debts have been sold on for as little as 5 or 10 pence in the pound they are still making a profit from you.
If they offer 25% I would suggest it is as good as you are going to get and would go for it
Do everything in writing dont do it over the phone.
MBNA will do a partial settlement allow you to pay off 30% but the rest is on your file for 6 years but they wont enforce it.