Full and final settlement

natlai

Hi All,

I have had it confirmed that I will be getting a compensation payment of £4499 in the next 4 - 8 weeks. I was wondering if I would be better writing to the companies that I am in debt to for a full and final settlement figure.

I had a loan of £4000 which I have made 2 payments to ( they didn't set up the direct debit and not heard from them in two months).

4 x Credit cards totalling £1905
2 x store accounts totalling £ 5100

I have been making more than the minimum payments (just) each month apart from the loan which I guess is about 4 months in arrears now.

Looking for the best option to take.

Thanks

Yargo1

Hello... just bumping this for you..someone who has more info than me will be along soon im sure..

Tixy

I think its very unlikely you will get a reduced settlement on any of the cards or store accounts you are up to date with payments on.

You might get a reduced settlement on the loan - has this loan already had a default notice issued and the default marked on your credit file? Paying a reduced settlement might impact on your credit file (they might issue a default if they hadn't already and they will likely only mark your file as partially satisfied.

wrightk

so long as your behind with your payments and they have been passed to debt collection agencys you can offer a full and final settlement figure which usually is between 30-40% of the original figure. I guess that if your loan is 4 months in arrears it would be now going to a debt collection agency.

Try at this point also to negotiate satisfactory amendments to your credit report in return for settlement of the debt. No point in trying this after as you wont get anywhere. Its unlikely that they will accept but its worth a go.

Like tixy said it is unlikely you will get settlement figures on the accounts you are paying the minimum payments towards because your payments are on time and they are making money out of you. Full and final settlement figures are usually for people whos debts are past the original company stage and are now being sold to debt collection companies.

It sounds like you might be better off in looking at ways you can clear up the balances on those cards that are spread around everywhere particuarly the ones with low balances, perhaps close them and only rely on one credit card, then concentrate in taking a sizeable portion away from the store cards available credit you have from the money you are expecting.

This will certainly reduce your monthly payments from your store cards, giving you a bit more money each month, look more attractive on your credit file, because you are only using a portion of your available credit and organise those credit cards so you are able to keep more track of your finances

natlai

I've not had a default notice for the loan. In fact they wrote to me in December about it and I again stated that they hadn't taken the deductions from my salary and when was it going to start as they failed to take the payments for it but continue to take my savings amount from my salary. At the moment I just can't afford to pay it. Not sure what to do. Done as SOA yesterday and was advised to make the minimum payments on 5 of my accounts and I should be able to pay all of on CC off this month and then all of another next month and 2/3 of another in April.

natlai

wrightk wrote: »

so long as your behind with your payments and they have been passed to debt collection agencys you can offer a full and final settlement figure which usually is between 30-40% of the original figure. I guess that if your loan is 4 months in arrears it would be now going to a debt collection agency.

Try at this point also to negotiate satisfactory amendments to your credit report in return for settlement of the debt. No point in trying this after as you wont get anywhere. Its unlikely that they will accept but its worth a go.

Like tixy said it is unlikely you will get settlement figures on the accounts you are paying the minimum payments towards because your payments are on time and they are making money out of you. Full and final settlement figures are usually for people whos debts are past the original company stage and are now being sold to debt collection companies.

It sounds like you might be better off in looking at ways you can clear up the balances on those cards that are spread around everywhere particuarly the ones with low balances, perhaps close them and only rely on one credit card, then concentrate in taking a sizeable portion away from the store cards available credit you have from the money you are expecting.

This will certainly reduce your monthly payments from your store cards, giving you a bit more money each month, look more attractive on your credit file, because you are only using a portion of your available credit and organise those credit cards so you are able to keep more track of your finances

My credit record is already up the river without a paddle so not too fussed about that as once I clear my debt I will be left with my car payments, phone, sky and rent so will be able to save like £500 a month.

wrightk

perhaps might be worth leaving the loan until it reaches a collection company then if your not worried about your credit history.

I have known some debt collection companies to offer 75% settlement figures on debts of over 4k

natlai

Thanks. Will wait and see what happens.