Full and final settlement- I dont know what to do!

thesim

Hi All,

Basically I would like advice on full and final settlements. All my debts are with debt companies and I may have enough to settle them shortly if I can reduce them.

I've heard of full and final settlements but dont really know what to do.

What are the do's and dont?

Thanks!

McKneff

Ring them up, ask them what they will accept as a full and final settlement, they tell you, you pay, job done.

Oh and by the way, get everything in writing.

McKneff

Its easy to get on the slippery slope, not so easy to stop my friend.
Life deals us duff deals at time, we cant see loss of a job coming when you have a mortgage and a couple o' kids and so cant see a way forward to paying the debts in full.

Hindsight is 20/20 vision, walk a mile in someones shoes who has been dealt some !!!!!! blows, then and only then are you allowed to critisise.

In most cases its not that they dont want to, its because they cant.

chanz4

no many are loosing jobs etc, but I think the culture of how can I make it uneforcable is getting a little bit childish companys are going under and people loosing jobs because people are not paying their debts. If you cant afford pay small payments, then at least they are been repaid

robthesnapper

A full and final is nothing to do with making anything unenforceable. If the DCA decide to accept a lower offer, that's their decision. End. of.

Having experienced the tactics of some of these banks, then provided you stay within the law, there should be absolutely zero sympathy for them.

boogiemaster

Phone them up and say out of curiosity what would it cost to settle this debt?

Most debt companies will give you a discount if your paying a lump sum but also try to haggle a little and ask about the default being removed in the price as you never know?

cloudcuckooland_3

thesim wrote: »

Hi All,

Basically I would like advice on full and final settlements. All my debts are with debt companies and I may have enough to settle them shortly if I can reduce them.

I've heard of full and final settlements but dont really know what to do.

What are the do's and dont?

Thanks!

The post from McNeff is the way to go - please do not be discouraged by any negative posts, as you can imagine some of us have a long way to go ....
Having said that I now owe about £24000, am 54 years old, single parent and I choose NOT to criticise other debtors in this fashion.
Why should we assume the worst about our fellow posters?
Good luck - I think you will find that your creditors will be very happy to accept discounts to settle - this is especially true if the debt has been 'sold on' to collection agencies who pay a fraction of what the debt was originally worth from credit card companies etc

heatherks

from what i have read on here a full & final payment request depends on who still has the debt ,, origional creditor or debt company ...how long you have been on reduced payments , missed payments etc

might be better writting to them

MrsTinks

Whilst I have no sympathy for those "running up debts with no intention of paying it off" then most of us on here will know that before a debt will be considered for F&F it's usually been defaulted for some time with reduced payments if any at all... That to me doesn't not usually mean "someone never intending to repay any of it"... it means someone who has for some reason ended up not being able to afford full payments for a considerable period of time but wishes to repay as much of it as they can and then move on with their lives knowing their credit file will be tarnished for the rest of the 6 years from when the default occurred...

I've been fortunate that I have never defaulted, and frankly sometimes only by pure luck!

whilst this certainly is an open forum - it does have rules and they are to be followed. Be nice to other moneysavers... you might not agree with them but try to be nice. If you can't... then maybe it would be as well to either start your own thread to comment and not try to upset people on theit threads?

Just a thought of course...

gargrave50

MrsTine wrote: »

Whilst I have no sympathy for those "running up debts with no intention of paying it off" then most of us on here will know that before a debt will be considered for F&F it's usually been defaulted for some time with reduced payments if any at all... That to me doesn't not usually mean "someone never intending to repay any of it"... it means someone who has for some reason ended up not being able to afford full payments for a considerable period of time but wishes to repay as much of it as they can and then move on with their lives knowing their credit file will be tarnished for the rest of the 6 years from when the default occurred...

I've been fortunate that I have never defaulted, and frankly sometimes only by pure luck!

whilst this certainly is an open forum - it does have rules and they are to be followed. Be nice to other moneysavers... you might not agree with them but try to be nice. If you can't... then maybe it would be as well to either start your own thread to comment and not try to upset people on theit threads?

Just a thought of course...

If Holsten made posts.............possibly the most sensible mutterings to date:D

paulo1paulo

Hi guys, please excuse me as this is my first post...
I'm looking for some advice/help in regards to Full & Final Settlement Offers... Your time will be greatly appreciated and I will post the outcome of my conclusions to support others in a similar situation...

I'm currently in debt to the sum of £14,750.00... I have been with Payplan for the past 3years now... Unfortunately last May I found myself compromised with income due to an injury at work... I have been off work since, which as you can imagine is taking it's toll financially... I have been making reduced payments to Paypal since last July to the sum of £6 per month... They are distributing it accordingly to each of my six creditors (£1 each per month)... I have no idea when i will be able to commence work as my injury is still very much disabling...

Thankfully I am now in a position where i will be in reciept of £5000.00 inheritance money within the next 8weeks (processing)... I have spoke to Payplan about this and they recommend that a settlement will only be successful at 50% (£7,375.00)... Unfortunatley i'm unable to find this amount due to my circumstances...

Should i attempt the negotiations myself in writting with template letters??? Do i inform them of where i have got the funds to settle (is this nessassary) or just request a settlement without explanation??? Has anybody any experience with the creditors below in regards to the percentage they generally settle for??? Also how much would each creditor settle for in my current situation (Percentage/££££)??? I have read throughout this forum that in some cases people have managed to settle their debts between 30-45%, I really hope that this will be the case for myself and i can put my Uncle's inheritance towards a greater cause... I have stated the nature of the debt and it's origin incase this has any baring on the negotiations????

I currently owe:
1)Wescot Credit Services/Arrow Global-£4500.00 (Loan), who are acting on behalf of MBNA banking, of whom placed a default on my credit score in Feb 2011, when the debt was forwarded on to the new creditors...
2)Moorcroft Debt Recovery Ltd-£250 (Overdraft)0, who are acting on behalf of LLoyds TSB , the debt was forwarded in Dec 2010...
3)BLS Collections-£3000 (Credit Card), who are acting on behalf of Lloyds TSB, the debt was forwarded in Dec 2010...
4)Mercers Debt Collections Ltd-£1250 (Credit Card), who are acting on behalf of Barclaycard, the debt was forwarded in Nov 2010...
5)Mercers Debt Collections Ltd-£2750 (Overdraft), who are acting on behalf of Barclaycard, the debt was forwarded in Nov 2010...
6)Opus-£750 (Credit Card), who are acting on behalf of Citi Bank, the debt was forwarded in Dec 2010...

Any advice/help given will be very much appreciated and in return I will recycle all advice given and practised through my own experience, for other's support and help calls... Thank you all sooooo much for your time and effort reading through my situation and for the support i have recieved within this forum, my grattitude is infinate!!!

paulo1paulo