Full and Final offers

InDeepDebt

I know that F&F questions are asked all the time and the answer is a bit of a 'how long is a bit of string' but, here goes:

The wife and I have quite a bit of unsecured debt. It was £69k when we had our light bulb moment in November 2009 - we've now got it down to £62k.

We have been given £2k and want to pay off some of our debt. We're just not sure how best to do it and how much to offer - have seen the letter on the National Debtline site so will be using that as a template.

OK, the thing that we're unsure of is how much to offer and to who. Our debts are all on a self administered debt management plan and are as follows:

Lloyds £15k - pay £15/month. Need to claim back £2k of PPI and fairly sure no CCA in place on this card (account about 24 years old). Debt still with Lloyds.
MBNA £8.5k - debt now with Experto who keep offering me a "you pay so much and we'll match it" deal. Currently pay about £46 a month.
Barclaycard - £5k over two cards - no CCA in place (even though they say there is). Pay £32 a month. Also £1k Egg debt (now with BC) - pay £5.50 a month
CITI - £800 - pay £24 a month. Debt with Opus - has been for about a year.
Tesco - £1700 - pay £24 a month. Was speaking to them last week and they said that they'd possibly accept 85% - I was hoping for 50% - debt still with Tesco.
HSBC - £7k - pay £110 - debt with Metropolitan.
HSBC - £2k -pay £30 - debt just gone to Moorcroft (just gone last week). They gave an over the phone settlement figure of about 91% last week. Was hoping for about 60% - guess it may go down as I pay them for longer.
Halifax - £9k & £5k - pay £65 and £27 - both cards with Blair Oliver Scott for about 18 months.
NatWest - £3k - pay £27. Only been on a payment plan for about a year. Debt still with Nat West.

Out of the above, I was originally hoping to pay off the smaller HSBC and CITI. When my wife's HSBC balance (£7k) was transferred to Metropolitan she was offered to settle for 65% - I was hoping for the same with my £2k debt that's just been passed to Moorcroft - the 91% over the phone figure came as a bit of a shock.
With CITI (Opus), I would just like to get rid of this. It's the only debt that we pay interest on but, as we are paying off so much more as a percentage (3% against about 0.5% - 1.0% for the others), I'm not sure that it is in their interest to accept a F&F offer.

So, is it too early to offer Moorcroft an offer (especially as they have just taken over the debt). If I do offer, as they only offered 91% over the phone - what should I offer as an opener?

If Moorcroft don't accept, I was thinking Tesco. Would be happy with £1000 to settle this (£1700 debt). Debt still with Tesco - was speaking to them last week and toyed with £800 and the lad on the phone said he very much doubted that they would accept such an offer but to send in a letter anyhow. He reckoned 85%.

With CITI (now Opus) - I was thinking of sending a letter offering £400 (50%). As mentioned above though, as I'm paying 3% I'm not sure that it's in their interest.

As well as the standard letter from the National Debtline, I was going to mention my lack of job security - decent job but four rounds of redundancy in three years. Hopefully this may give an incentive to them to accept.

Apologies for such a long post.

Any advice welcome.

[Deleted User]

never offer more than 50% as the start as bargaining

vicxzy

Hi InDeep, have you spoken to CCCS about this? They do a F&F settlement service Im sure they would be able to help?
Also I'm sure I heard of people offering & having accepted MUCH lower than 91%. If you are still paying them they have no incentive to accept your settlement though?

vicxzy

Also not sure if you have seen this before??

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

jon142

I know this probably isn't going to help but were do you see yourself in 6 years time? will all this debt be replayed by then?

If this was me I would be using that £2k for a bankruptcy fee and I would be starting from scratch, 62ks worth of debt isn't going to go anywhere fast.

My advise is declare yourself bankrupt and start over. Its only 6 years and you'll be free the moment the court declares you BR.

This all started in 2009 it's now 2012 ( 3 years to shift 7k ) at the rate it's going it's going to take you another 30 years to repay that 7k every 3 years.

However the moment younstep out the court you would be free and 6 years later the BR order will be over...

What do you think?

InDeepDebt wrote: »

I know that F&F questions are asked all the time and the answer is a bit of a 'how long is a bit of string' but, here goes:

The wife and I have quite a bit of unsecured debt. It was £69k when we had our light bulb moment in November 2009 - we've now got it down to £62k.

We have been given £2k and want to pay off some of our debt. We're just not sure how best to do it and how much to offer - have seen the letter on the National Debtline site so will be using that as a template.

OK, the thing that we're unsure of is how much to offer and to who. Our debts are all on a self administered debt management plan and are as follows:

Lloyds £15k - pay £15/month. Need to claim back £2k of PPI and fairly sure no CCA in place on this card (account about 24 years old). Debt still with Lloyds.
MBNA £8.5k - debt now with Experto who keep offering me a "you pay so much and we'll match it" deal. Currently pay about £46 a month.
Barclaycard - £5k over two cards - no CCA in place (even though they say there is). Pay £32 a month. Also £1k Egg debt (now with BC) - pay £5.50 a month
CITI - £800 - pay £24 a month. Debt with Opus - has been for about a year.
Tesco - £1700 - pay £24 a month. Was speaking to them last week and they said that they'd possibly accept 85% - I was hoping for 50% - debt still with Tesco.
HSBC - £7k - pay £110 - debt with Metropolitan.
HSBC - £2k -pay £30 - debt just gone to Moorcroft (just gone last week). They gave an over the phone settlement figure of about 91% last week. Was hoping for about 60% - guess it may go down as I pay them for longer.
Halifax - £9k & £5k - pay £65 and £27 - both cards with Blair Oliver Scott for about 18 months.
NatWest - £3k - pay £27. Only been on a payment plan for about a year. Debt still with Nat West.

Out of the above, I was originally hoping to pay off the smaller HSBC and CITI. When my wife's HSBC balance (£7k) was transferred to Metropolitan she was offered to settle for 65% - I was hoping for the same with my £2k debt that's just been passed to Moorcroft - the 91% over the phone figure came as a bit of a shock.
With CITI (Opus), I would just like to get rid of this. It's the only debt that we pay interest on but, as we are paying off so much more as a percentage (3% against about 0.5% - 1.0% for the others), I'm not sure that it is in their interest to accept a F&F offer.

So, is it too early to offer Moorcroft an offer (especially as they have just taken over the debt). If I do offer, as they only offered 91% over the phone - what should I offer as an opener?

If Moorcroft don't accept, I was thinking Tesco. Would be happy with £1000 to settle this (£1700 debt). Debt still with Tesco - was speaking to them last week and toyed with £800 and the lad on the phone said he very much doubted that they would accept such an offer but to send in a letter anyhow. He reckoned 85%.

With CITI (now Opus) - I was thinking of sending a letter offering £400 (50%). As mentioned above though, as I'm paying 3% I'm not sure that it's in their interest.

As well as the standard letter from the National Debtline, I was going to mention my lack of job security - decent job but four rounds of redundancy in three years. Hopefully this may give an incentive to them to accept.

Apologies for such a long post.

Any advice welcome.

InDeepDebt

Many thanks for the answers.

I'm not sure whether my situation is fairly unique amongst people on debt management plans in that the majority of my debts are still with the original creditors (although some with in-house debt collection agencies).

The other thing that I am apprehensive about is the amount of time that the few debts that are with external debt collection agencies have been with them.

I'll look at my SOA again and see how much I should be paying - some creditors certainly get more as a percentage than others. May have to address that issue which would reduce the payments to some.

My main question is whether creditors that still have the debt in house are likely to accept a reduced F&F?

Cheers

Jim

jon142

MBNA will accept 40% if you push them.

I.e 8.5k = £3.4k

InDeepDebt wrote: »

Many thanks for the answers.

I'm not sure whether my situation is fairly unique amongst people on debt management plans in that the majority of my debts are still with the original creditors (although some with in-house debt collection agencies).

The other thing that I am apprehensive about is the amount of time that the few debts that are with external debt collection agencies have been with them.

I'll look at my SOA again and see how much I should be paying - some creditors certainly get more as a percentage than others. May have to address that issue which would reduce the payments to some.

My main question is whether creditors that still have the debt in house are likely to accept a reduced F&F?

Cheers

Jim