Full and Final advice please?

donnalou36

Hello,

I am currently on a DMP with Payplan and have been for 4 years. My current estimated balance is £7600 (From 26k). My Dad has offered me £3000 to help get rid of it. Do you think this is a realistic amount to offer? And also, do you think Payplan would get me better offers or am I best contacting creditors myself?
Also it might be worth mentioning that all my debt has been sold on to collection companies, apart from Barclays which took over my Egg account.

Any advice much appreciated. I'm changing jobs and can't afford my current payments. I just want rid now.

Thank You
Donna

National_Debtline

Hello Donna,

£3,000 equates to just under 40% of the amount you have outstanding. On the face of it that appears to be a pretty solid offer. I have spoken to a number of callers who have settled for an amount of 40%, and lower. If you do decide to make full & final settlement offers do consider starting with a lower figure. Often the creditors may try and negotiate you up.

Payplan should be able to assist you. That said, you are more than able to negotiate yourself. We have created a fact sheet to help you negotiate full & final settlements, you can find it by clicking here.

If a debt collection agency has purchased a debt, they generally do so by paying far less than the true value of the debt. This means that they may consider a very low settlement from you - as they'll still turn a profit on the debt.

Make it clear that your circumstances have changed for the worse - as it reinforces the fact that a full & final settlement is in their best interests.

If you have any further questions feel free to give me a shout.

Best wishes,

David @natdebtline

donnalou36

Thank you,

One more question...Do all my creditors need to accept a F&F offer for this to happen?

Thanks again

Donna

National_Debtline

Hi again,

The general principle is that you start by offering everyone the same percentage. What's likely is that your creditors may all accept differening percentages, some may not accept at all. Any arrangement that reduces your overall indebtedness is a good thing. So, to get to the point, you do not need all creditors to agree.

Hope that makes sense!

David.

donnalou36

Perfect sense.

Thanks for your help.

Regards

Donna

Monkeyballs

Hi Donna,

Just a quick suggestion which might help...

Go in loooow, say 25-30% and mention that it's a limited funds kinda deal which in my experience makes them more likely to play ball and gives you a little wriggle room as well so it makes them feel like you're doing the best you can

It's possible that some might settle for 30% while others might want 50% so saving a little here and there should help get the most for your money!

Good luck!

MB x