Advice on negotiating a final fee plz

Hi everyone,

A family member has offered to clear our debts for us (from a house sale). Can anyone suggest how I approach our creditors to negotiate a lower final settlement? What is realistic? We currently owe approx £19k with 6 creditors. Is there a minimum/maximum percentage that I can use in my negotiations?

I had to give up work as childcare for 2 children cost more than I was earning. My relative has said they are willing to give us £15k to clear our debts. Is that unrealistic? On what we repay each month now, we are looking at between 5-7 years before our debts are paid, so I'm hoping that will work in our favour.

Any help or advice would be very much appreciated!!!!




  • Tixy
    Tixy Posts: 31,455 Forumite

    Are you currently up to date with your payments / meeting minimum payments? or have you defaulted or are in a DMP?
    If you are currently up to date then its unlikely your creditors will settle for less than the minimum payments. If you have defaulted then they may well accept less. If you have defaulted are your debts with the original creditors, in house debt collectors or sold on to third party debt collectors?
    A smile enriches those who receive without making poorer those who give
    or "It costs nowt to be nice"
  • DS4215
    DS4215 Posts: 1,085 Forumite
    Have you defaulted on the debts or continued to make repayments? - it is easier if you have defaulted.

    Write a letter to them offering a low amount and see what they say. All they can say is no, and either come back with a counter-offer or just reject it completely. By low, I'm talking 20% of the total owed. There is a template on here somewhere that you can use. Just make sure you say its from a third party and they agree (in writing) not to pursue it at a later date.
  • We have defaulted on all of them, & all the debts have been sold onto another firm (Blair Oliver & Scott etc) & we are in a DMP.

    Do you have the link to template please?
  • Tixy
    Tixy Posts: 31,455 Forumite
    Factsheet and template

    Blair Olive Scott are inhouse debt collectors - so would probably accept a F&F but probably not as low as a third party collector would.

    But I would expect that you'd get much lower offers than 78% offered (£15k against £19k). Always start low - you can always offer higher if they won't accept your first offer. Maybe start at 20-25%.
    A smile enriches those who receive without making poorer those who give
    or "It costs nowt to be nice"
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