Partial payment offer

kenjay216

I have recently gone on to a minimum payment plan with Halifax because I am unable to continue paying the £140.00 minimum payment each month. While discussing how much I could afford to pay I was told that they would accept a partial payment offer to clear the debt, however they were not allowed to tell me how much this was. Has anyone had a similar experience or any idea what percentage they would accept ?

dresdendave

If you can't find £140 per month for the minimum payment, how are you going to find a lump sum to clear the debt?

undaunted

If you get far enough into arrears they'll start suggesting some figures to you I suspect, perhaps a 25% or even a 50% reduction might be considered. However given the £140 pm minimum payment you must owe 4 or 5k so I agree with the above where would yopu find that? Please dont think of lending from some loan shark to get a discount - it will only cost you more interest in the end.

If you did enter into such an arrangement would probably be recorded on your credit file as a partial settlement.

I would suggest that any arrangements you come to are confirmed in writing by your card provider as constituting acceptance in full & final settlement. I read somewhere of a co. coming back for more after a debt collector had supposedly entered into such an arrangement

It may be worth looking at contacting someone like consumer credit counselling service, c.a.b. or a local legal advice centre for help with this / any other debt as they may be able to negotiate with all creditors on payments / settlements or look at any other options which may be available to you dependant upon your circumstances.

chattychappy

dresdendave wrote: »

If you can't find £140 per month for the minimum payment, how are you going to find a lump sum to clear the debt?

Sometimes a family member will step in.... who knows?

[Deleted User]

undaunted wrote: »

Please dont think of lending from some loan shark to get a discount

The grammar Nazi in me is compelled to point out that you can't lend from someone - you borrow from them. You lend to someone.

YorkshireBoy

chattychappy wrote: »

Sometimes a family member will step in...

They'd generally have 3 options then:

1. Pay off the, say, £5K debt in full, thereby enabling OP to avoid it affecting their credit file (any more than it already is).

2. Pay off, say, £3K (60%), meaning a 'partial settlement' flag is placed on OP's credit file, meaning their credit worthiness is affected for some time to come.

3. Keep lending/giving OP £140 a month until they're back on their feet.

In said friend's position I'd be looking to start with option 3.

[Deleted User]

billbennett wrote: »

The grammar Nazi in me is compelled to point out that you can't lend from someone - you borrow from them. You lend to someone.

And that is completely inappropriate usage of a hyphen.

Anthorn

Be extremely careful to ensure that you have a signed letter which says "in full and final settlement". If it's a partial payment but not in full and final settlement you can still be hounded for the rest of the debt and it will be recorded on your credit report as a partial payment.