My Full and Final Journey

cloudy-day

Evening All. As I have posted before, I have been on DMP for 2.5 years. I have inherited some money (my Mum died so needless to say I'd rather be poor and have her with me). I have decided to go down the F&F route rather than to pay off my mortgage.
I owe approx £56K (down from £79K), and hope to settle with £28k (50%), but would settle for £34k (60%). I started by offering all my creditors 25% (letters posted on 20/03/12) to see what would happen. Thought I would document what happens to keep myself on track and help anyone else going through this. Would welcome any advice.
Let the games begin....

26/03/12 First reply! Santander cards rejected 25% but will take 75%! Not a huge one be still more than £3k. Will phone in the morning to see if they are prepared to negotiate. May pay anyway as it’s a result and I really want to clear these debts.

MusicalLawyer

PLEASE don't phone them to negotiate. Just write them another letter saying you cannot afford 75% and say you can pay 50% as a maximum as it's a family member that is giving you the money as a gift, if it will clear the debt.

If you phone them to negotiate, and they accept 50%... you very well could end up paying it there and then... and Santander could come back for the rest of it.

rising_from_the_ashes

First of all .... so sorry that you've lost your Mum (((hugs))).

Totally agree with MusicalLawyer - please send another letter as noted. There was a thread a couple of weeks ago and someone had negotiated a F&F on the phone, paid and had then received communication for an outstanding amount. When they phoned up to explain it was a F&F the recording of the phone call (very conveniently) couldn't be found.

Wishing you the best with your F&Fs and will pop back to see how it's going!

fatbelly

Doing the negotiation by phone is fine ... as long as you get written confirmation on company headed paper that is unambiguous in detailing the agreement. And you don't part with money until you are happy with it.

Cloudy Day - I think your approach is good. Just make sure you don't post any details on this thread that would allow you to be identified by your creditors.

cloudy-day

MusicalLawyer wrote: »

PLEASE don't phone them to negotiate. Just write them another letter saying you cannot afford 75% and say you can pay 50% as a maximum as it's a family member that is giving you the money as a gift, if it will clear the debt.

If you phone them to negotiate, and they accept 50%... you very well could end up paying it there and then... and Santander could come back for the rest of it.

Hmmm, well thats something to think about.

I'm in no rush, so think I might do it all by post (rather have everything in writing).

So they've said they want 75% -are we negotiating as I just assumed that was the least they would take?

Am I as well writing back with 50% do you think??

Thanks for all the help as always.

LittleMissGiggles123

I would go in at 35% or 40 first to see if they come down a bit. They may come down to 60, then you say 50 & there's hopefully more chance that they'll accept. Make sure you get it in writing too that it is full & final and will be marked as such on your credit file.

And sorry to hear about your mum.

cloudy-day

Posted letter off to Abbey offering 40%.

Just got a call from Caboot saying that 25% is too low - they want 75%. I see a pattern here! Said could they put it in writing and I'll think about it.

Thinking of going back with 50%. Don't like dealing over the phone but I'll get everything in writing.

75% seems to be the lowest they'll take.

Yargo1

hello.. sorry to hear about your mum

I wish you luck with the full and finals.. hope they settle for a lot less and so you can then do something nice for you as a break from all the worry you must have had recently x

gazfocus

Think of it this way...25% was your offer and you expected to have to increase whereas 75% is their first offer and they will expect to come down from that. The majority of debts can be settled for below 50%.

cloudy-day

gazfocus wrote: »

Think of it this way...25% was your offer and you expected to have to increase whereas 75% is their first offer and they will expect to come down from that. The majority of debts can be settled for below 50%.

Thanks.

I'm happy with 50%, just not convinced that I'll get it down from 75% to 50%.

It does help writing it all down and getting other people opinions.

MummyDrusilla

Sorry to hear about your mum

I don't have any experience with this in particular but I always say it's better to ask than to just agree. The worst that can happen is they say no and you'd have to pay 75%. Hopefully they'll play ball with the negotiations.

Good luck x