Advice on Full & Final Settlement to creditors

borderlakland

this seems to b normal oh phoned credit card co 2 say he couldn't make minnimum payments he offered to make token payment of £5/month next phone call they offered to accept £2000 off total owed if full settlement made within 28 days

bagyra

I am not sure if this is the right place to ask this question, but I was reeding all the post and wanted to know how does full settlement will effect your credit history? I know probably for you its sound silly question, but I am new here, so please accept my appologies. Reason I am asking, becouse me and my husband got a lot of debt. I can manage my one but I am at the stage where I can't manage anymore his ones. Thank you.

Emmzi

bagyra,

they normally won't take a reduced payment in full and final settlement until you've already defaulted on the loan and your credit rating is shot anyway.

I'd have a reads of the 'first time posters' sticky at the top of the forum which has some good advice.

bagyra

Emmzi,

Thanks for your replay, I did read first time posters sticky, but I am still confused . I am not even sure enymore what is the meaning of defaulted. My husband got 2 barclaycard accounts, both of them are on agreed payment, all charges and interest are suspended, so is that a default? I have contacted creditors mayself and explained the situation and we agree amount of monthly payments which we can afford. Can I make to them finall setlement offer ?

Emmzi

yes, he has defaulted, so go ahead.

Here's a link to a sample letter.

http://www.nationaldebtline.co.uk/england_wales/temp/8116_25821.pdf

They generally won't take very very low amounts, so you may need to start at 50% of balance on the basis that it may go to 75%... but see how you get on!

bagyra

Emmzi,

Thank you very much I have saved the letter and will try my luck after a weekend. Will let you all know the outcome.

k993802

To all posters above...

...many thanks for sharing your experiances and views - they're exactly what I was hoping for people to share.