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What to offer as full and final...help?

sylviemylove
Posts: 45 Forumite
Hi
I am on a dmp with cccs, owe £9200 to santander on loan (was £18 originally) and £1000 to santander on cc. Have been on dmp since 2008 never missed payment and am currently paying around 60% of the real monthly amount I should be paying if I had any money:o. I pay £201 per month but £92 of that is interest as santander would not freeze it.
Very good friend has offered to loan me £5000 to offer as a full and final settlement. I would just pay her what I am paying out now, but it'd be interest free so would bring it down really quickly.
Worried that I am almost too good a customer if you know what I mean!!!!
Do you think they would accept this? Should I start lower? If they say no should I pay it off my balence anyway?
Would appreciate advice.
Thanks
I am on a dmp with cccs, owe £9200 to santander on loan (was £18 originally) and £1000 to santander on cc. Have been on dmp since 2008 never missed payment and am currently paying around 60% of the real monthly amount I should be paying if I had any money:o. I pay £201 per month but £92 of that is interest as santander would not freeze it.
Very good friend has offered to loan me £5000 to offer as a full and final settlement. I would just pay her what I am paying out now, but it'd be interest free so would bring it down really quickly.
Worried that I am almost too good a customer if you know what I mean!!!!
Do you think they would accept this? Should I start lower? If they say no should I pay it off my balence anyway?
Would appreciate advice.
Thanks
0
Comments
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Hi Sylvie,
They may accept less than the £9200 you currently owe, but I'd start by offering around 25% of the total amount and take it from there. Do everything in writing and don't settle until you have written documentation that the agreed amount is as a "full and final settlement of the debt". There is a template letter on the national debtline website that you can use. Deal with them only in writing though and the older the debt, the less they're likely to accept as a full and final. If the debt is one year old, they'll probably settle for 80%, 3 years old around 50-60%ish, 4 years old may be around 30-40%ish etc, although these figures are only guidelines. If they say they'll accept say 60%, you make a counter offer of say 30% and see how you go, but don't let them bully you into paying and do everything in writing!
Good luck
RedIf you've nothing decent to say, perhaps you shouldn't say anything.
£2 savings jar £300:D
Total credit card debts £1250:mad::mad::mad::mad::mad: - Will I ever learn!!0 -
Thanks Red. Its a weird situation as my small income is about to drop further and I will have to lower my payments anyway which makes me nervous...0
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Hi Sylvie,
Just make sure you get everything in writing from them and if you can agree a settlement figure, make sure it has the words "as a full and final settlement" in the letter. Don't let them phone you and say this deal is only available now etc, be firm and deal with them only in writing. I do hope you get it resolved though, as they're being horrible by not reducing/freezing the interest!If you've nothing decent to say, perhaps you shouldn't say anything.
£2 savings jar £300:D
Total credit card debts £1250:mad::mad::mad::mad::mad: - Will I ever learn!!0
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