Good Credit vs. Full and Final Settlement

Mousey99

Hello all,

This is my first forum post and I'm hoping that someone can advise me.

I have always managed to get credit and I have always paid my bills and debtors on time, even if it means we have sturggled in other areas of our lives.

I have just received an inheritance and wish to pay off most of our debts.

I have a loan from Lloyds TSB that we took out for £14000 three and a half years ago. We now "owe" around £7800.

Considering that I have always had a good credit score in the past and never missed a payment is it worth me trying to offer a full and final settlement?

If you think I would be successful how much should I offer?

I am not trying to get out of paying what I owe, only what I owe minus some of the interest(!). I have recently been diagnosed with a conditions leaving me unable to work for the forseeable future. The extra cash would be a great help to my recovery. We stupidly did not take out a PPI.

I would greatly appreciate your advice - even if it is just to pay what I owe.

Thanks! x

fatbelly

Mousey99 wrote: »

I would greatly appreciate your advice - even if it is just to pay what I owe.

Well that is my advice, yes.

F&F settlements work for those who have defaulted probably a long time ago, are only making small (or no) payments to their debts and have long since given up on having a good credit rating.

The creditor has to decide whether to receive £1 per month for 1000 years or maybe 30% lump sum now.

In your situation, just pay them off and get on with your life.

Pott5y

I agree with fatbelly. This is not the same as a full and final settlement figure.

Ring them up and get an early settlement figure which will be calculated from balance outstanding and any interest owed to that point.

Good luck