Full and Final Settlement Offer Questions

xtrouble

I'm coming into some money shortly and want to pay off all my (and my partners) unsecured creditors.

A few questions for you wise MSEr's

Is there a standard % figure that they will normally accept as settlement, as I wouldn't want them to get anymore than I can get away with, after all they have had loads more off us over the years ?

Has anyone got a standard letter template for this sort of thing ?

Is this possible for personal loans as well ?

We have credit with Barclaycard, Capital 1, Egg, Halifax, Citi, Argos, M&S and Lloyds. Do any of these companies not accept reduced full and final payments ?

I know there's a few questions, but this is probably our one chance of getting out of the brown stuff, and I want to make sure we get the best deal we can

CLAPTON

have you defaulted on these debts if so give the details

xtrouble

I have missed a couple of payments here or there, but nothing drastic.

I just think that over the length of time I have had this credit, the companies have had large amounts off me, and of course the majority of that has gone on interst payments, and the debts have kept fairly static, so now it would be nice to get something off if possible.

RayWolfe

You can pay your debts so pay them. Why do you expect me and others to pay them for you?

misscutiepie1984

Don't be so harsh RayWolfe - Your entitled to you opinion but theres no need to be rude about it.

butch_dingle_2

RayWolfe wrote: »

You can pay your debts so pay them. Why do you expect me and others to pay them for you?

are you really so pompous as to think you are paying other peoples debts for them..dearie me

:rotfl: :rotfl:

misscutiepie1984

nice offer aint it i got 11k if anyone wants to pay it for me

Stephen_Leak

xtrouble wrote: »

<snip>Is there a standard % figure that they will normally accept as settlement? <snip>

100% is usual.

xtrouble

RayWolfe wrote: »

You can pay your debts so pay them. Why do you expect me and others to pay them for you?

Oooh a keyboard warrior !

I dont want anyone to pay my debts thanks very much, however I have given the banks a large return on their money over the years, and am now in a position to haggle with them, if that's acceptable to them. If not, fair enough, but money's no different to anything else as far as I can see. If you have a differing opinion then fair enough, you're welcome to it, but there's no need to get all shirty about it, you are prime cardiac material, if you get het up reading a message board man(woman ?), just chill.

YorkshireBoy

xtrouble wrote: »

I have missed a couple of payments here or there, but nothing drastic.

I've no personal experience, but this question has been asked before. The usual answer given is that lenders will not entertain reduced settlement offers unless it is obvious (by your payment history) that you are in financial difficulties and they really ought to get what they can while they can - expecially if they can see from a search of your credit report that you owe money to other creditors.

Missing a couple of payments but "nothing drastic" is not going to get you a settlement figure. After all, they'll get £12 a go and be able to pile more interest on if you continue as you have been. You are their dream customer...a 'revolver'.

No, I'm afraid you're going to have to miss up to 6 payments and default before they will consider a settlement offer.

Be warned though, if they take a reduced settlement figure (after you have shown them that you're struggling) they will mark your file with a 'default' and then an 'arrangement to pay' (X 8 accounts!!!!!) - effectively trashing your credit history and preventing you from obtaining mainstream credit for 3-6 years.

butch_dingle_2

to be honest, the question someone asked about having defaulted on these debts is a salient one - obviously if you are having trouble paying a creditor is going to be more amenable to you paying him off in one go, for probably a lessor amount.

So generally if you have been managing they wont accept a full and final. You would need to basuically end up screwing your own credit score to save a few quid. probably not advisable.

Unless you had another reason to want to short-settle which maybe in their interest - leaving the country for example ?