Getting debt written off

mitel

Hi

My wife and I currently have 30k debt over 5 credit cards, a car loan and 2 catalogues.

The car and catalogues are covered but the credit cards have all defaulted, 4 are accepting £1 token payment whilst the other has ignored letter and sent debt to DCA (Mercers, been helpful so far).

A family member has recently sold there house and moved in with partner and has offered to help but asks if theres any way of getting some of the debt down.

As you hear on the radio of companies who can get parts of debt written off i was wondering if there is sample letters or something i can send along the lines of

"We owe you x but will you take y and settle the account"

Obviously we dont expect them to half the debt or anything but maybe cut some of the interest off? Not sure how to go about the process without sounding like some gypsey who wants something for nothing.

Thanks :T

Luckystepho

Hi Mitel- once the accounts have been defaulted it is always possible to offer a lump sum as a full and final settlement. Make it clear to them that the money is being gifted by a relative or they may think that it's yours and they can get more out of you. Some people recommend starting by offering 40% of the total balance, I did see a table somewhere which recommended different amounts for different types of debt but I can't remember where (sorry! Maybe someone else knows where it is and can post a link?)

If your offer is accepted make sure that you get written confirmation that it's a FULL AND FINAL settlement so they can't come back in future and try to get more out of you. Good luck!

mitel

Thanks, this is exactly what i was after!

I'll do a quick google for that chart

would you suggest this be offered in writing or telephone?

mitel

For anybody else in the same situation I have found this site with sample letters, hope its ok to post here

http://www.insolvencyhelpline.co.uk/debt_factsheets/full_and_final_settlement_offers.php#3

Luckystepho

Thanks Mitel, I was just about to say that there should be some sample letters somewhere- I am so disorganised! I think making the offer in writing is definately best as you then have the proof.

Blackpool_Saver

Gypsy ?:eek:

mitel

redpete

mitel wrote: »

would you suggest this be offered in writing or telephone?

You could make the offer by phone but be prepared for a difficult conversation and them trying to persuade you to up the offer.

BUT - make sure before you pay them anything that you get confirmation from them in writing that they will accept the payment in full and final settlement of the debt. Do not act on anything they say on the phone until you have it in writing.

mitel

redpete wrote: »

You could make the offer by phone but be prepared for a difficult conversation and them trying to persuade you to up the offer.

BUT - make sure before you pay them anything that you get confirmation from them in writing that they will accept the payment in full and final settlement of the debt. Do not act on anything they say on the phone until you have it in writing.

Thanks, this seems so obvious now.

I will update this thread for anyones whos interested