making a offer on debt

medologyrich

Hi

I was after some advice on some debt that i have. I have about £30000 worth of debt this is mainly on credit cards but is also on unsecured personal loans. It got to the point where i decided to sell my house and start again. my question is should i contact my creditors and make cash offers on the debts, to try and reduce the totals, or would they want it all?

Any advice would be appreciated.

Thanks

Tixy

Hi

If you have defaulted on your agreements then creditors may be willing to accept lower offers on your debts. But if you are up to date with payments then its likely they'll expect the full balance.

(and I wouldn't advise getting behind on payments just to try to get a reduction as the effect to your credit file would be serious and long term).

patbal2000

Hi
It definitley does not hurt to try, I have managed to get a £340 debt with lowell down to £170 after a 10 minute conversation with them, just remember to stick to a figure and tell them that the money is a gift from someone else on the proviso that everything is settled and that you wil not be chased for the same debt further down the line, also before you pay anything, get the full and final offer in writing from your crediter/dca, and hold onto it for the duration of the original debt, that way you have proof of they decide to chase it.

Good Luck:T

Pott5y

The answer to this question really depends on whether or not you are behind on your payments.

If you have met most of you minimum payments and the debt is still with the original creditor then you may get what they call an Early Settlement Discount. The outstanding balance less any interest or charges etc. If not then the amount will need to be paid in full.

If you are behind with your payments, not meeting the monthly repayments or on a DMP then you may well be able to get full and final settlements but these will definately affect your credit rating. As patbal 2000 states these must be administered correctly to protect you from any further repercussions.
more info can be found here http://www.nationaldebtline.co.uk/england_wales/debt_advice.php

Good luck with it all