Early settlement of loan

h19g

Hi,

I have been given the opportunity by a family member for them to help me settle my loan early and i'll pay them back.

What is the best way to go about this and is there a certain percentage of the outstanding amount that loan companies tend to accept ? Obviously i'd like them to accept as little % as possible but don't want to offer too less an amount unless it is rejected and my family member changes their mind.

Any advice greatly appreciated.

Thanks

OneLife_OneShot

How much do you owe?

Is the loan defaulted and in the hands of a Debt Collection Agency?

How much are they willing to lend?

gb12345

Unless you have defaulted on the loan then the company will not consider anything except full repayment as per the loan terms.

h19g

Hi,

Thanks for your post.

I've phoned them up and asked them today for the settlement figure and they have said it would be £8,745.21.

I had previously missed some payments a while back when I was in financial difficulty but I haven't missed a payment since then which was about 1.5 years ago.

My family member hasn't put a limit on how much they can help but they have asked me to do all the investigating and go back to them. They had though it was about £8,000 though

Thanks

OneLife_OneShot

If that is what they quoted then that is what you must pay to settle it early. Like Gb said you might only be able to get a lower amount if it was a default.

h19g

So do you both think that even if I offer something in the region of £7,000 (80%) then this likely to be rejected outright ?

[Deleted User]

Yes. You're going to need to default and have a few dances with the collection agencies if you want a discount.

It's not worth trashing your credit record for a few quid.

h19g

Thank you all for your help

gb12345

Think about it from the lender's point of view.

You are currently paying X per month on time and the longer the loan goes on for the more money they make from you. So what incentive have they got to encourage you to repay early?

If you had defaulted and the DCA weren't getting any money off you then they would take the attitude of taking whatever they can get and would therefore consider a taking a lower figure.

tonkinator

If your family member is willimng to lend it interest free then will they lend you enough to pay it all off?

If so it's a no brainer for you, just make sure u use it to pay off the loan!

_Andy_

h19g wrote: »

So do you both think that even if I offer something in the region of £7,000 (80%) then this likely to be rejected outright ?

lol!! why on earth would they agree to that?