Offering creditors settlement figures

TheRealLane

Hi everyone, just wondering if anyone has had success offering their creditors reduced amounts of money to settle debts. I have many small debts (we are talking between 300 and 1000 pounds each here) and I was wondering how others got on and how much did they offer? I was thinking about offering about one third of the outstanding balance and working up from there in ten per cent increases if they do not accept straight away. Any info would be encouraging. Thanks in advance!

Tixy

Hi and welcome

Are you currently behind with repayments? have your creditors issued default notices against you? If you are currently up to date with payments then its very unlikely they'll accept reduced F&F offers.
If you are behind with payments / on a reduced payment plan etc then they might consider them.

If you are doing F&Fs then you need it in writing from them first that they payment will be in full & final settlement of the debt and you won't be chased further - and to have in writing what they have agreed to in terms of your credit file. Have a look her for advice and a suggested template - http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=24_full_and_final_settlement_offers

But yes start low, and increase if they won't accept (and if you can afford to make an increased offer).

TheRealLane

Yes they are all in default, except Barclaycard, who stubbornly refuse to accept that I've only been paying 1pound a month for the last two years and keep sending me normal bills. how do I get them to default, any ideas?

lyndsey80

I've just sent a F&F settlement letter to all my creditors. So far none have accepted, and that's offering them about 50%, some a bit more, of the outstanding amount!! I thought they would want to accept.
I got a letter template from the CCCS and a formula to work out how much to offer them.
I've just scanned in the 3 replies I've got and sent it to them so they can advise me what to do next...

Has anyone had any luck with F&F being accepted???

Westminster

I've had varying levels of success which will depend on a number of factors such as:

• How long you have been on your DMP (the longer the better)
• How close to the contractual minimum payments you are (the further the better)
• Whether your debts have been assigned to Debt Collection Agencies (DCA's buy your debt for a tiny fraction of your original debt and as such - they are more likely to accept than original creditors as it is a quick profit for them)
• Who your creditors are (MBNA are particularly keen to accept F&F it seems)

ANY_CHANCE

Hi

I am trying to do the same thing
Halifax have said no
cl finance have said yes but for more than i offered which is more than i have available
I havnt heard from halifax cc yet

Yum

are these debts passed to debt collection agencies? If so you would be more likely to have a settlement accepted. Also depends what stage it is - pre legal 50% is likely to be accepted BUT if not accepted ts a sticky situaton to be in. Also depends if the debt collection agency is working on behalf of the company or if they have purchased the dbet. (likely to get a better settlement for a purchased debt)

Do you have any assets? If not, they would prob be better off taking your offer!

ANY_CHANCE

I have been paying reduced amounts for around 5 years think i will take me 25 years at this rate to pay off the debt. I had sent a letter with an offer of full and final and they said they can only accept 55% minimum. my max I can give is 44% (I can increase my offer because one of the other debts said they wouldn't accept anything so I can put their money to this one.

I was thinking of ringing this particular company up and asking if this would be possible as the deadline they have given is early the end of next week!

This is the largest debt I have so it would be good to get rid of it

Yum

Ring them on the last day of the month and make your offer. From experience I know they will be more likely to accept this then especially if they are stuggeling to hit their target by month end. Unless they know that you have equity of property or elsewhere and they have nothing the lose by taking it further.

Good luck.