Offers to Collection Agencies

sophean123

Hi,

I am looking at making offers of a lump sum payment to some of my creditors who are now dealing with collection agencies.

I have been told in the past that some collection agencies will take a reduced amount of the balance if you are willing to pay a lump sum payment? Is this correct? And also how much is the usual to offer?

Thanks in advance.

Tixy

Debt collectors will often agree to accept a reduced amount in a lump sum, how much depends on a lot of factors including whether you are currently making regular payments, how long it will take to clear the debt based on current repayments, whether they are still charging interest, how confident they are of your financial position, how much of the original paperwork for the debt they hold etc.

Useful information about making full & final settlement offers and a template letter here - http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=24_full_and_final_settlement_offers
Its important that you get written confirmation from the debt collector before you pay.

Debt collectors may sometimes accept offers from as little as 15% of the full value in some circumstances but may refuse offers of 95% of the debt in others.