Full and Final offer - what % would you start negotiations?

OhNoNotAgain

Hello

I am finally after many years in a position to offer my creditors a full and final offer to settle the balance on my accounts.

I was wondering whether anyone had any experience of this....I have the below useful link https://www.nationaldebtline.org/EW/factsheets/Pages/24%20EW%20Full%20and%20final%20settlement%20offers/Page-03.aspx

I was wondering if you go in at 35% stating that this is all the money available and they decline it makes it difficult to then go back with a 50% off which they may find more agreeable.

What % would you start negotiations at?

Thanks!!

Brogden

OhNoNotAgain wrote: »

Hello

I am finally after many years in a position to offer my creditors a full and final offer to settle the balance on my accounts.

I was wondering whether anyone had any experience of this....I have the below useful link https://www.nationaldebtline.org/EW/factsheets/Pages/24%20EW%20Full%20and%20final%20settlement%20offers/Page-03.aspx

I was wondering if you go in at 35% stating that this is all the money available and they decline it makes it difficult to then go back with a 50% off which they may find more agreeable.

What % would you start negotiations at?

Thanks!!

My agreed F&F's have so far been tiddlers.

There are stories on the site of people having 15% even 10% accepted. It seems the longer the account has been defaulted, the lower the agreed payment plan the better the deal agreed. If I am hones I think a starting point of 35% is too high!

I will be 'wading in' next year but I have recently had an experience with a DCA where everything revolved around the payment being made that day. I know this sounds pathetic and it felt so at the time but true - in the circumstances I got agreement to a five day delay!

I am going to give no advance notice to DCA's and with debit card in hand will ring up to offer the most cheeky amount to pay there and then. If the debts are still with the bank then a little longer term planning may be OK. Somebody on the site said ring the DCA's on the last day of the month when they are trying to maximise their monthly takings before closing the books on the month - I think there may be logic there.

Good luck

OhNoNotAgain

Wow - Interesting..... my account has been open for a number of years so hopefully I will be able to secure a good deal. Thanks for the reply x

OhNoNotAgain

**Bump**

So I spoke to my DMP about making Full and Final statements - they take 50% of any savings I make off the reduced balance agreement!!

I think that is a LOT

I also spoke to each of my creditors who say that the most reduction that they can offer is 25% So I have to offer at least 75% of my balance.

I was hoping to start negotiations much much lower - I am not even earning at the moment I am on maternity leave.

I would love to here other peoples experiences making pro rata offer to creditors.

Creditors also suggested I talk to step change who have rejected me in the past.

Are you more or less likely to be successful dealing via a DM company or directly to the collection agencies themselves??

I would love to hear your experiences.

Thank you !!