Final settlement figures - under what circumstances?

Helen302

Hi,

I haven't posted on here for a while now as have been making steady progress with the... debt (I really really hate that word!)

I would really appreciate an answer to my query below as I've seen other people talking about final settlement figures, but didn't want to hijack their thread.

A quick background: I'm 32, had credit cards/loans for years since 22, reached July '04 with £47k of debt and couldn't pay the minimum payment on anything, so paid a £1 to each until Payplan sorted me out. I've been paying £800 a month with frozen interest agreed on everything ever since. I work in a bank and have been lucky to get a small bonus (not much, I'm just a PA!) each year to add to the total. I'm now down to about £22k.

My question is: would my credit cards/loan people accept a final figure at some point or would they think, oh well, only another couple of years to go maybe, we'll expect her to pay the whole lot back? I've haven't discussed this with Payplan yet as I've lost a bit of faith in them recently as they've "lost" payments to a couple of places. My other worry is some of the credit cards keep trying to charge me interest again, until Payplan intervene each time and explain I am still on an agreement, then they usually agree again.

Thanks very much,
Helen

LittleL_4

Hi Helen, yes of course your creditors will accept full and final settlements. However, you must have them agree to the amount in writing just in case they take the amount but don't settle. :eek:

This is what i plan to do, in fact I've been thinking about it all morning. I started a DMP in Septemer through CCCS but i want to save as much as poss next year and go down this route too.

Good luck! Sounds like you're almost there :T
L
x

Helen302

Cheers, I just thought that they might look at me and see I've been doing well and say no, you know, almost penalise me for being able to pay them back. But then I suppose receiving a one off amount near to what I owe is better for them to receive than a regular amount that will take a couple of years to pay back.

Will definitely speak to Payplan soon and see what they think.

Thx a lot

LittleL_4

Exactly! I think they'll jump at the chance, good luck! Keep us informed
L
x

CLAPTON

i would suggest you structure your offer via a third party...parent, OH etc and say that they are willing to pay on a one off basis. whether they leap at the offer depends upon many factors and is not automatic, e.g. has the debt been sold on, how much are you paying per month and how much the debt, how much are you offering for a F&F etc.