Negotiating Full & Final Settlements

woofer

Hello there.

We're almost debt free, but need some advice on how to negotiate full & final settlements with our creditors. What sort of percentage of outstanding debt would be a good starting point? Any form of words that works too?

Any help would be gratefully received.

Many thanks

M&T

CCCS_Emily

Hello Woofer,

To start the process of full and final settlement offers you need to ask your creditors what they would accept. Do not let them know how much you have available. If they come back with an offer you are happy with then you can pay the money and that debt is sorted out. If you think you can get the settlement figure lower then write back with your offer and see what they come back with.

There seems to be no set percentage creditors want as settlement but you could maybe try as low as 30% or 40% and then come to some agreement between that and what they have asked for.

If you don't have enough to cover about 50% of want you owe in total try and go for the larger debts first and work your way down, or highest interest.

Always negotiate full and final settlement offer in writing and do not pay anything until you have it in writing from the creditor that they will accept that amount and not pursue you in any other way to collect the debt.

pachablu

Hello CCCS_Emily,
I wondered if you could answer a question for me...my situation is that I have been running away from my debt for years...although for the last five years I have had personal problems that has meant that I was unableto work etc. Anyway I currently owe in excess of £35,000 (these are very long standing debts) and are spread over various banks, credit card and companies including the RBS, American Express, Equidebt and a couple of loan companies. I am still not working but I will be in employment by the end of the month (August) (it would seem at long last that my fortune is about to change:j ). However, a relative of mine has recently been left a sum of money and they are prepared to lend me some money to help pay off my debts and I was wondering if

(a)I could get these companies to agree to a reduced fee in full & final settement.
(B) Do I make these approachs to the original bank/loan company or to the Debt collection agencys of which I have Westcot, ECI Debt collection and a couple of solicitors threaterning action towards me at the moment?
(C) is there any sites thatn have template letters that I might be able to download..as I am not the best letter writer in the world.

Any advice or help that you or anyone can give would be very helpfull


Pachablu

CLAPTON

woofer wrote: »

Hello there.

We're almost debt free, but need some advice on how to negotiate full & final settlements with our creditors. What sort of percentage of outstanding debt would be a good starting point? Any form of words that works too?

Any help would be gratefully received.

Many thanks

M&T

before being able to give advice we need a little more information about your circumstances.

Are your debts all defaulted?
if so when did you default?
Are your debts with DCAs or the original creditors
Are you in a debt management program
how much do you owe
how much are you paying per month

a useful resource with a proforma letter is shown here

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

woofer

CLAPTON wrote: »

before being able to give advice we need a little more information about your circumstances.

Are your debts all defaulted?
if so when did you default?
Are your debts with DCAs or the original creditors
Are you in a debt management program
how much do you owe
how much are you paying per month

a useful resource with a proforma letter is shown here

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

Yes they were defaulted

Ages ago!

DCA's mainly

Yes

We owed over £11k

We were paying (in total) about £40 permonth

Managed to negotiate all debts for less than £4000, needless to say we are delighted!

:money: :money: :money:

CCCS_Emily

Woofer,

Great news on the settlements!

CCCS_Emily

Hello,

Firstly I would suggest you start a new thread with your query.

There may be various ways you can deal with your situation. One thing you need to bear in mind is if your relative is lending you the money they will want it back, so really you are just moving the debt around. Owing money to family can become far more problematic than owing money to creditors.

In the meantime you could have a look at out online advice facility Debt Remedy. It helps you put together a budget and gives you advice on how to deal with your situation. You can access it at www.cccs.co.uk

CCCS