Paying off debts.How much?

dibdabable

Hi my OH and I are in a position to pay off all our debts.We've been on a DMP for a few years which we've been very good at keeping up.Never missed a payment etc.
My question is this, I suppose it's a moral question really. I have enough to pay it all off but have recently had offers from two of the companies to settle for less than the actual amount.
Now could I simply go ahead and accept their offer or I am I obliged to disclose my new situation and actually repay in full.

Obviously it goes without saying I'd prefer to spend less, but I don't want to lie and say I only have enough to pay the lesser amount.
I realise some will say you borrowed the money you should pay it all back, but I thought I'd throw the question out there. I'm less concerned for the present what's the right thing to do, I know the answer to that, it's more about what can I legally get away with.

Loubylou2

We are in the process of negotiating f&f. We can't pay the full amount so in a totally different situation. I'm not an expert but I would guess that some of your debts would have been sold on by now (so you won't be dealing with the original company) Therefore they would have paid much less for the debt which is why they are offering you a lower f&f. In other words if you pay them the full amount now they will get more than they paid for it.
I'm sure somebody will correct me on this if i'm wrong.

As I said we are in a different situation. In fact because we have only been in our DMP 18 months we are still with one of our original creditors and ATM they do't seem willing to negotiate at all:(:(
If I were you i'd snap their hands off, pay what they are asking and move on. All the best. Lucky you:)

[Deleted User]

Just pay them the offer that they have made to you & say that Friends or Family have helped you out with the cash to settle it!

Dxxx

rdchick

Yep I am with Dolly on this... yes you could get on a moral high horse and say you borrowed X so you pay X back but let's face it... if we can get away with paying less then why would we pay more than they ask for?! You have learnt your lesson with debt via your DMP no doubt so pay what they offer and treat yourself with something you've wanted but couldn't have before Well done! xxx

dibdabable

Thanks for all your replies and positive support. I'll give it some more thought. I suppose I want to do the right thing but am hoping against hope someone will say, no just make them an offer and don't mention that you can pay more.

I'll let you know what we decide.

nad1611

I tend to agree, particularly as they have asked if you want to settle and given you a specific amount to pay. They haven't said if you can pay more do so. Hopefully someone else can give you a more precise answer.

JulieGeorgiana

If you have been given an offer of F&F take that amount and pay it of as that is the amount they want, and what they can afford.

For those accounts that you have not, write to them and ask them for a settlement figure and be fair.

dibdabable

Thanks. This is probably what I will do. I'll still save money like this.

Tixy

Being in a DMP is informal and you are not obliged to tell your creditors how much money you had to make F&Fs or how you came by that money.

Are your debts with original creditors or sold on to 3rd party debt collectors? certainly for any with 3rd parties I would write to make them a low offer (and if they've offered you a settlement I'd write and offer something less). I wouldn't feel any obligation (moral or otherwise) to pay any more than the minimum that you can get away with to debt collectors - after all they probably only paid 10% for your debt.

National debtline website has a useful factsheet and template letter on full & final settlements if you need one.

dibdabable

It's amazing how we can be lulled back into something when we know it's going to mean we'll pay less. Hence the reason your ideas sound so appealing TIXY.
There's only one debt with the original creditor and the other three are with a 3rd party. The third party collectors are also the ones who I have a negative from on my credit file whereas the one with the Original Creditor haven't any strikes and show I've paid all my DMP payments on time and in full, so I'm certainly keen to clear the debts going against me first.

The debt with the original Company is for the most and is the oldest debt of about 7 years.

Thanks for all you thoughts, I'll do a bit of planning and make some offers and go from there. I'm excited about clearing the debt but somehow,oddly scared at the same time!