Early settlement on DMP advice.

impycunious

Just wondering the procedure on trying to offer my creditors an early settlement and how best to go about it and approximately what percentage of the original debt might I expect them to accept?

Thankfully I managed to claim back a very substantial chunk due to PPI charges; it worked well for me and it has cut years off my DMP. I now have a total of 10k and two creditors (both banks).

Any advice much appreciated, thank you.

Jason_Bourne_2

All depends how old the debts are, have they defaulted, amount outstanding and how much you are currently paying back each month.

I negotiated my F&F's myself, write letters and made phone calls. Updated payplan with the ones I had paid.

impycunious

Hi the debts are 5 years old and approx 10k split between two creditors, I may have defaulted once or twice as the original day of the payment leaving my account was initially at the end of the month, but that only happened a maximum of twice and then was paid immediately after. So its just a case of contacting the bank then, your DMP company don't do it on your behalf I take it?

Jason_Bourne_2

You can ask the DMP company to do it if you want but I prefer to negotiate myself.

With the default I was meaning the account has registered as a default on your credit file, not late payments?

If they haven't registered a default then the chance of an early settlement is much less and with some lenders none at all.


Are the debts still with the lender or is it a debt collection agency?

happy_bunny_2

Start low, say 30% and see what they come back with.

This is useful:
http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=24_full_and_final_settlement_offers

Jason_Bourne_2

happy_bunny wrote: »

Start low, say 30% and see what they come back with.

This is useful:
http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=24_full_and_final_settlement_offers

That's lazy. Depending on the circumstances 30% could be achievable.

happy_bunny_2

Jason_Bourne wrote: »

That's lazy. Depending on the circumstances 30% could be achievable.

Eh? Lazy? What?

Jason_Bourne_2

happy_bunny wrote: »

Eh? Lazy? What?

Starting lower could get a better result, but with more time and effort.

Like I said, 30% may be achievable depending in the circumstances. Starting at 30% almost defiantly means you won't settle anywhere near 30%.

Need to know more before you jump in and start at any figure.

happy_bunny_2

Fair enough.

But only 5 years old, so unenforceability isn't going to be much use.

Getmeoutofdebt

I had a debt of 3,400 with mbna and had been on a self managed plan for a year and they invited me to offer a settlement figure. I asked them to explain more and they said I could make an offer of between 40% and 90% and they would assess it and see if they would accept. I didn't have much money to offer so I offered the lowest at 40% and they bit my hand off!! I saved £2k!!!
Hope this helps!

impycunious

I will keep you all posted, thanks guys- such a great forum.