wee bit of advice req re settlements

wifeforlife

I'm getting £8109 in September from my employer, this is a backpay settlement.

I've outstanding debts which back in 2004 were near £27k and I am still paying monthly although alot are now cleared.

I've contacted the creditors and requested full & final settlements and I'd love someone with experience to help me do what is best

Llyods TSB which was previously Morethan I've an outstanding balance of £1101.17 - they wouldn't offer a settlement

DLC which was previously Liverpool Victoria my balance is £3072.09 and they have offered me a settlement of £2458.09

RobinsonWay my balance is £1479.09 and they have offered me a settlement of £1250.09

Abbey I've a balance of £1822.22 and they've stated I've to offer them something but if it's less than 95% then it'll show as a partial settlement on my credit file and they won't be looking for the money in years to come.

I've also a balance of £1100 with Next, £1400 with Simplybe and I'd love to make a dent in these if I could as these accounts have interest on them as the ones above don't althought they're all on a payment plan originally set out by payplan back in 2004.

Has anyone any experience with dealing with this. Now that I've the potential to become debt free for the first time in years I really want to get it right and if I could clear as much as possible it would make such a difference to my life

TIA
Cate

fatbelly

Llyods TSB £1101.17
DLC £3072.09
RobinsonWay £1479.09
Abbey £1822.22
Next £1100
Simplybe £1400

Total 9974.57

Cash available £8109

So 80% f&f would do it.

This depends how tough you want to be. They'll all settle for 75% so you could start at 60% and move up. But you could do much better. In your situation I'd probably start at 50% and use the ND factsheet as a guide.

Factsheet | Full & Final Settlement offers

Note the pattern is - you make an offer to them and require them to respond. Don't make payment until you have a letter from them with wording that you are happy with.

DarkConvict

Firstly, are these debts defaulted, have you been making good payments on them. The higher the chance of them getting paid the more they want in a settlement, business sense really.

I agree start in at around 60% if these debts are in good standing and see where you get. Ensure they know the money is offered by a family member and is only available for a short time. And add in a deadline for 14 days of their reply. - http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=24_full_and_final_settlement_offers

morgan78_2

I had a debt with robinson way for £1800 and settled it for £1000

wifeforlife

Thanks everyone. All these debts were previous defaults from 2004 and 2005, I've been paying regular monthly payments since 2005 and have more than halfed my level of debt, thanks to the reading of this site and specifically this forum.

I had called them all to get these figures but I'll start writing letters today and get them posted. I get this money definately in September but I'll not make them aware of this.

Just to update I've sent the letters, I used the formula on the link you provided me. I'll let you know how I get on

Thanks Again
Cate

wifeforlife

Just to update, i've been offered £2266.97 as f&f settlement on a £3072.09 debt. MBNA won't offer a f&f but will consider partial settlement so I don't know what to do

I haven't had any other replies as yet

wifeforlife

Robinsonway have offered today £1225 as a partial settlement but won't write anything in a letter stating full & final and won't put in writing that they guarantee they won't come looking the balance in the future

It's the day before payday and I've no idea what do now? Any advice on how I should proceed. I'm obviously intending to pay the DLC debt who have stated full & final

Thanks in Advance
Cate

sofababe

If they won't accept your offer just let them know u will carry on paying at the previous rate & there is no way u can pay more than your offer. If its a choice between a F&F or 5 more years of reduced payments they will usually see sense in the end and accept.