sensible f & f settlement help please

bigmacman

ive got a few debts what im thinking of paying off and getting out of the way.
what do you think i should offer as a f & f
im currently in a dmp with cccs but might be able to get some money to pay it off from the parents.

moorecroft- £3070.46 (Britannia loan)
moorecroft-£997.58 (natwest loan)
moorecroft- £242.02 (orange mobile phone bill)

any help be much appreciated

bottleofred

Hi bigmacman,

The settlement figure can very much depend on the age of the debt, whether it is with an in house collection agency or an external debt collector. For debts of around 1 year old with an in house recovery team, the full and final would usually be 75-80% of the debt. For debts of 4 or more years old though, the full and final could be from 20-50% of the debt. I would start low though (20%ish)and if they accept great, if not though, they may make a counter offer of say 40%, then you could make a counter offer of maybe 30%. Deal with them only in writing though and don't pay a penny until you have written confirmation that the agreed amount is as a full and final settlement of the debt. There is a template letter on the National Debtline website which should help.

bigmacman

brilliant thank ya ill do the maths with the folks see what we can rustle up
thank ya