Full & Final Query - Please Advise

kirstle99

Hi all

In a nutshell, we have been on a DMP with Payplan since 2007. Currently we still owe around £12,000 which will take about 4.5 years to repay as it stands.

A family member has offered us £6,000 to hopefully settle our debts, which represents 50% of the total owed. My questions are:

1) Do we go through Payplan with this or try to settle with creditors directly?

2) What does everyone think our chances will be of actually settling at 50%? Our biggest creditor has transferred to a collection agency, but the 2nd biggest is Barclaycard over 4 accounts & I heard they can be bad to deal with?

3) The ones that have not defaulted us, what should we do with them? Still offer settlements or pay off the others first?


Sorry for all the questions I just wanted to know what to do & the best way to go about it.

Thanks in advance

emweaver

I have found some have took 50% F&F but most of our creditors wouldn't go less than 65-75%.

Barclaycard are a nightmare to deal with they won't take less than 75% might be best to wait until they sell on your debt as I found DCA were prepared to accept less.

You should make offers to them all as you are meant to treat them all fairly.

I don't know if you should go through payplan I would ask them.

bargainbetty

When you do make the offers, be sure to state that you have been offered a fixed sum to clear a debt, and you are seeking a full and final settlement. Do this in writing, and put a time limit on the offer. If that creditor refuses, move on to the next.

However, never send a penny until you have it in writing from them that the debt will be considered fully settled (never accept a partial settlement).

Good luck

kirstle99

Thanks all.

Well we have had 4 acceptances so far (yay!) but as expected Barclaycard have been stubborn. I sent a letter using the national debtline template with how much we had (lump sum) and how it was getting divided up amongst them all.

I had an old Egg card which was taken over by Barclaycard and they have accepted the offer on that but refused the offer on the 2 Barclaycards? Odd? I'm wondering if maybe they bought the Egg debt for peanuts or something like DCAs do?

Anyway i'm not sure what to do with the refusals really as we can't physically offer them any more money, maybe we should settle higher balances first?