Full and Final Settlement Info - DMP

movingonup_2

Info about Full and final please?

mcjordi

im not sure on the affect to the other creditors as to weather this is favourtism or not but..

start at 25/30% of the balance.. use the template letter than can be found on the forum

MrC1977

i was advised that you can settle with any creditor at any time as long as your regular payments remain to be on a pro-rota scale for all creditors. I guess the theory is that if you settle a smaller debt then the larger creditors will get more monthly. Plus you are not using your money - somebody has offered to give you the money!

only my opinions though!

Tixy

When on a DMP then in theory you should treat all creditors equally - that is any additional money you have should be split between them all pro-rata.

However they key thing is that this is not your money. As it is your wife's money then she is only prepared to give it to you if it pays of a debt (or a couple of debts in full). When you make your written offer to your creditor ensure that this is stated (so that if they refuse the offer they cannot then just ask for the money towards the debt, which arguably then could if it was your savings.

Its also worth adding in to your letter that if they do not accept your offer by x date (give then a couple of weeks) the offer will be made to another creditor instead.

This is a useful factsheet - http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=24_full_and_final_settlement_offers

As to percentages, always start low, you can negotiate up if you need. If any debts have been sold to third parties these usually accept the lowest percentages (20-25%) , but in a DMP any creditor may be open to offers. If the debt is still with the original creditor they will likely want quite a bit more, although it will depend on the balance, how long ago you defaulted, the amount of time it will take to recover it all under the DMP, the day of the week (or at least the time until their next target deadline, so quarter ends can be good i.e right now), the mood of the person reading the letter, etc etc.

Once a debt is settled then inform CCCS who will then distribute that creditors share of your monthly between the others.

movingonup_2

Thanks to everyone who has replied. I'll keep the thread updated with progress