debt collection, will they settle for 50%?

hivez

Hey all,

Since last time I have visited this forum I have been working up to 14 hours a day to pay off my debts and now I only have £900 of debt to my name! which is amazing for me, I have one debt of £550 to a company called EOS for an old paypal dispute which I just gave up on as paypal are the spawn of satan,

Now I have an arrangement with EOS of £15 a month payback which seems quite reasonable however I`d really like to be completely debt free, I can get together around £300, do you think its worth calling EOS and asking them if they will settle for £300 to clear the debt? How likely is this they will accept,

I have been told by a family member some debt collection agencies will accept 50-70% of the original debt if you offer to pay it off in one, I have also been warned not to let them catch onto the fact I have the money readily which I do, you see £15 a month is great for me however for peace of mind sake it would be good to completrely squash it,

Do you guys think its worth a shot?

Thanks,

Ryan

DVardysShadow

It is worth a shot. Don't open with your best offer - and before you pay it off, insist that they confirm in writing that they accept the amount in Full and Final Settlement

Tixy

Hi Ryan

Well done on reducing your debts. I'd say it is worth a short - DCAs will often accept low F&Fs. But I wouldn't ring them, its always advised to make F&F offers in writing so you have proof your payment was for the whole debt if anyone tries to chase at a later point.

What is sometimes suggested is that you write to the DCA and say a relative has offered to lend you say £250 but only on the condition that it repays a debt in full. So you would like to offer them £250 in full & final settlement of your debt to them. Also in the letter give them a deadline to respond eg you could say your offer is only available until (2weeks) time and after that the money will be offered to another creditor.

Bliss_Butterfly

First day on here today, so much advice this thread especially. I have a couple of debts which i too want to make F&Fs.....didnt know where to start but i do know.

barbiedoll

I would definitely echo Tixy's and DVardy's advice and go in with a lower offer, certainly at first. DCA's buy debts for a fraction of their worth, usually around 20%! Personally, I'd start with £200

Always tell them that someone is willing to give you the money to pay off this debt, that way they can't come back and demand a higher repayment schedule than you already have in place, just because they think that you're suddenly rolling in cash.

Make sure that if they accept your offer, you get confirmation IN WRITING, that this is a Full and Final settlement and that the balance will not be passed onto any other DCA.

Good luck!