F&F settlement questions

cado1

How much should your starting offer be 50% ?? and if you only have enough funds to offer one creditor F&F settlement can you advise them in your letter that if they do not accept you will offer it to another creditor ?

bottleofred

Hi Cado,

The amount you offer initially depends on how much you owe and how long you have owed the money for. For example, if a debt is around 3-4 years old, I'd start with an offer of around 20%. The creditor does not have to accept this offer, but may make a counter offer of say 50% and you can then make an offer of say 25%. This can go on until you agree on a full and final settlement amount. However, don't pay anything until you have written confirmation that the agreed amount is as a full and final settlement of the debt and keep all the letters. You can also say if they don't accept then you will offer another creditor the money, but I wouldn't advise it as it can cause annoyance and this could lead to offers being rejected.