Settlement offer for debt of £6,180

Bagpuss102002

Good evening all, I have a old existing loan from 4 years ago with HSBC for £6,180 I received a letter from a company called MK Recoveries today asking me to contact them to arrange a repayment plan, this is the first correspondence I have had with this company and am yet to reply. But I was considering my options and was looking for some advice on what would be acceptable to offer as a full settlement in relation to this debt any advice greatly recieved. Thanks

stig.of.the.dump_2

First question I would ask myself, Can I afford to make them an offer of Settlement.??
Then the second question would be to them, how much would they be willing too accept.If you are both agreeable to the fiqure pay it and you have got rid of one debt.

Bagpuss102002

The only problem I have is I'm guessing they will say we will accept £4,000 or something like that which I don't have I was just wandering what a realistic figure would be and what they would have originally paid for the debt.

eyeopener2

Go in low, say about £2k and see what the reaction is. Don't try and second guess them. Then pop it up to 2.5k if it's a straight forward No. You never know your luck.

There are some great template letters on the national debtline website.

Get and Do everything in writing.

Monkeyballs

Go in low, be realistic about what you can afford and be prepared to negotiate BUT remember to get a copy of the settlement offer in writing stating it is a full & final settlement and no other payments will be sought, etc on headed paper from them and receipt of payment

For me, on a £6180 debt I'd start at maybe £1.5k (so about 25%) but expect to settle on between £2-3k.

MB

sourcrates

Bagpuss102002 wrote: »

Good evening all, I have a old existing loan from 4 years ago with HSBC for £6,180 I received a letter from a company called MK Recoveries today asking me to contact them to arrange a repayment plan, this is the first correspondence I have had with this company and am yet to reply. But I was considering my options and was looking for some advice on what would be acceptable to offer as a full settlement in relation to this debt any advice greatly recieved. Thanks

Hi,
Before you do anything else, send them this letter in order for them to prove they own the debt, and its yours :


http://forums.moneysavingexpert.com/showthread.php?t=2607247


it will keep them quiet for a while, while they gather the required evidence, I would do this even though you already know its yours, could put you in a better position, after they produce the evidence I would start at 30% and take it from there, its all about negotiation.

National_Debtline

Hello there,

I understand that you are trying to look at all options to deal with this debt and full and final settlements can be a good option if you have a lump sum available. If you dont actually have the money available and would need to take out more finance in order to do make this offer then I would probably advise against this. However, if family and friends are helping then this may be ok. There is no minimum offer so it is a case of using the money that is available.

When doing full and final it is normally better to pick an offer you are comfortable with and try to stick with it. Sometimes, when you increase your offer this can make negotiations harder because the creditor doesnt know your genuine limit. It is important to get all of the details of your settlement agreed in writing before you send any money. You may find our sample letter quite useful if you decide to go ahead with your offer.

Here is a link to our factsheet and sample letter.

Best Wishes,

Laura @natdebtline

harveybobbles

Send prove it letter first.

Also, when did you last make a payment?