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Question RE: Full & Final Settlement Offers
pingu-lingo
Posts: 10 Forumite
I would like to, if possible pay off my outstanding debts - I have up to about £1200 to pay them off.
I did owe £5500 - I have paid £2800 via payplan (£100 per month for over 2 years). So without interest I owe £2700 but I don't know how much of my debts Payplan managed to freeze without interest (I am trying to contact payplan to find out and leaving endless messages for them to call me back).
I have read on other posts where people suggest 40 - 70% offers.
Would this be 40% of what I originally owed or 40% of what I currently owe?
Can Payplan negotiate discounts or even if they can -am I better doing it myself?
Thanks for any suggestions/answers!!
I did owe £5500 - I have paid £2800 via payplan (£100 per month for over 2 years). So without interest I owe £2700 but I don't know how much of my debts Payplan managed to freeze without interest (I am trying to contact payplan to find out and leaving endless messages for them to call me back).
I have read on other posts where people suggest 40 - 70% offers.
Would this be 40% of what I originally owed or 40% of what I currently owe?
Can Payplan negotiate discounts or even if they can -am I better doing it myself?
Thanks for any suggestions/answers!!
0
Comments
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Hello pingu-lingo,
With full and final settlements you are negotiating to clear the outstanding balance. You need to write to them and ask what they would accept as full and final settlement of the debt, but do no let them know how much you have available. Let them come back to you with an offer. If you can afford the amount they suggest then great, if not you can write back with your suggested amount and negotiate with then until you come to an agreement with them that you are happy with. Start off offering about 30%- 40% and see how it goes.
It is important you do this all in writing and do not pay them anything until you have it agreed in writing. You need written confirmation from them that they will accept the payment as full and final settlement of the debt and not pursue you to collect the debt in any other way.
I don't know if Payplan negotiate this kind of thing, you would need to speak to them to find out, but there is no harm in doing it yourself.
Good luck and let us know how you get on.I am a Debt Counsellor that works for the CCCS and have specific permission from Martin, to post on these boards to try and help those in debt. Read more information on the CCCS and what it does in the Debt Problems: What to do and where to get help article.
CCCS is a registered charity, and there is no charge whatsoever for any of the services we provide to our clients. We take great pride in offering first class help and advice, but we only offer this where we have been able to fully explore and understand your circumstances with you. We want to help you understand these choices and their possible implications but not make them for you.0 -
Hi P_L - The National Debtline has a good template letter, for 'Full and Final' offers to creditors. It can be found on the following link:
May I suggest that you, initially at least, offer slightly less than you can afford, as creditors often reject your first offer.Good luckI am NOT, nor do I profess to be, a Qualified Debt Adviser. I have made MANY mistakes and have OFTEN been the unwitting victim of the the shamefull tactics of the Financial Industry.
If any of my experiences, or the knowledge that I have gained from those experiences, can help anyone who finds themselves in similar circumstances, then my experiences have not been in vain.
HMRC Bankruptcy Statistic - 26th October 2006 - 23rd April 2007 BCSC Member No. 7
DFW Nerd # 166 PROUD TO BE DEALING WITH MY DEBTS0
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