final settlement offers HELP

wizard3891

Currently we have 3 main debts

1. car finance - They gave me a settlement figure the other day of £6237

2. Rac loan - Have not got a confirmed figure yet but I think its around £9000

3. Halifax loan - approx £19000


we easily meet all repayments on time and in full but I want to get an idea about them accepting a final settlement.

My question is, as we havnt missed any payments at all and are managing the payments is it still possible to offer them less to settle??

PLEASE ADVISE

carolbee

I too would be interested in others view on this, as I am in the same position

sanfrancisco

Do you mean you want to clear the debts totally, with full and final settlements? (ie: come to an agreement that if you pay now, you only pay 60%?)

Normally, you will not be able to negotiate f&f's if you have been making all payments. You will have to default first and then your credit rating will be stuffed. I am under the impression that one or two defaults will not do it either, ot has to be bad.

However, in this situation, I have commonly seen 50-60% f&f's, and sometimes lower.

wizard3891

hmmmmmmm so without wrecking our credit ratings its not really an option

would we not be able to tell a white lie and say thay if we cant settle lower then we are likely to default in the near future

carolbee

i have been making regular monthly payments for the last two years, on a self set up DMP, they have frozen interest. I would like to clear these completely and realise that our credit rating is shot to pieces anyway, so thats been considered.

sanfrancisco

wizard3891 wrote:

hmmmmmmm so without wrecking our credit ratings its not really an option

would we not be able to tell a white lie and say thay if we cant settle lower then we are likely to default in the near future

You could try. However, I have not read of this working in 2-3 years of reading MSE. Never say never.

Have you tried posting a SOA, so we can help to see where you could possibly pay more? I know its boring, but you will get a great sense of satisfaction paying it all back.

Do you know something is coming up which will make paying more difficult, redundancy etc?

sanfrancisco

carolbee wrote:

i have been making regular monthly payments for the last two years, on a self set up DMP, they have frozen interest. I would like to clear these completely and realise that our credit rating is shot to pieces anyway, so thats been considered.

They will be far more likley to accept f&f's in this case.

However, you will need a lump sum, from a house sale, inheritance etc. I don't think you can arrange a F&F offer, and then keep paying monthly.

wizard3891

no theres nothing coming up like that. I just want to see if they would accept less if we were to settle.