How Much Will creditors Accept?

chelskigirl123

Hi,

Does anyone have any idea what percentage of the full debt creditors will generally accept to settle.

I am currently paying off with pay plan but have come into a lump sum but its not enough to completely pay off my debts.

Thanks

immoral_angeluk

Depends on how much the debt is and how long it's been defaulted for but I'd say to expect anywhere about 70-80% of the original debt but some have accepted as low as 50%! Best bet is to call them and ask but get any amount in writing and make sure that it says FULL AND FINAL settlement.

CLAPTON

it rather depends upon how long along they defaulted your debts, have the debts been sold to DCAs, how much are you currently paying in relation to the debts

Nicky_3

It really depends on who the creditor is and how long you have been making reduced payments. Also how much you are currently paying could be a factor.

It could be anywhere from 50% to 80% (on average).

If you are thinking of offering Full and final settlement figures, I would let Payplan do this for you as some creditors prefer it to happen this way.

chelskigirl123

Hi,

Thanks for your replies. I have asked Payplan to look into it. they are very good and highly reccomended.

My original debt was about £12k and I have been paying £110 a month through payplan for about 15 months.

CLAPTON

currently your level of repayment will take about 10 years to repay the loan..i would have thought that an offer of half the amount for immediate setttlement would be quite attractive to most creditors

you may find this of interest especially the proforma letter

http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=24_full_and_final_settlement_offers

Iron_Pyrite

Can you arrang a settlement deal including the removal of a default notice?

I didnt pay for 14 months ( long story ) have default notice and have paid £427 for the last 7 months, have £14700 left to pay.

If i am going to have my credit knackered for 6 years - why wouldnt i just try and offer them minimum, its crippiling me to pay them, i was only paying to salvage my credit :rolleyes:

Deep_In_Debt

As others have said. I found I got a better deal with the DCA's as they buy debts for pennies in the £ so managed to clear one with a DCA at 45% (sure I could have done better on that - just wanted rid!). The original creditor would accept nothing less than 70% on the same debt.

vuittondreamer

Make an offer starting at about 45% to 50%, at the moment the number in default is growing at a dramatic rate, so i think they take a large reduced settlement. I asked for the lowest settlement figure from them, and then knocked off another 20% and they accepted. (mint CC)

tomterm8

I got a deal at 30% of the original amount. In the main, it depends on your negotiating skills. I've heared of people getting deals for as little as 10%, but in the main you are looking at 50%. it is important to know how to do the deal, too, as otherwise the Full and Final settlement can be overriden by the courts.

Iron_Pyrite wrote: »

Can you arrang a settlement deal including the removal of a default notice?

I didnt pay for 14 months ( long story ) have default notice and have paid £427 for the last 7 months, have £14700 left to pay.

If i am going to have my credit knackered for 6 years - why wouldnt i just try and offer them minimum, its crippiling me to pay them, i was only paying to salvage my credit :rolleyes:

It is possible to negotiate the removal of a default notice, but in practice the best most people manage is to get it marked as settled in full... the fact you are paying through a DMP should be noted on your credit file, but doesn't really help you at all.

Diggingoutofdebt_2

I have cards with Halifax, Barcalys, Virgin and Lloyds. Anyone have success in getting settlements with these. If so what approach did you use? any useful contact names, numbers or addresses gladly accepted. It seems that the key with credit card companies if often to get speaking to someone with decision making power who is not a call centre drone.