Offering 60% To Clear Debt

chrisharding56

I Need Some Advice On How To Proceed With Clearing A Final Debt.
I Started Out With 22 Creditors Owing £37000 And Have Managed To Pay Off 18 At Reduced Rates ( Varying Between 30% - 70% Reduction ). I Now Have A £17000 Unsecured Loan That Has Gone To A Debt Collection Agency And Offered £10000 In Full And Final Settlement. After Completeing A Income And Expenditure Exercise, We Found That I Still Have A Deficit Of £200 And Cannot Afford To Increase Monthly Payments Of £1.
The £10000 Is Not Even My Money. It Has Been Offered By A Family Member Who Is Reluctant To Pay It If It Doesnt Clear The Whole Debt. This Is The Second Offer We Have Made As The First Offer Of £6901 Was Declined. I Made A Silly Mistake Of Telling The Debt Collectors That The Increase Was A Rebate From A Secured Loan, But That Wasn't The Case And Was Later Told About The Hold On The Money.
The Debt Collector Wants The £3000 That Isn't Available In Installments Of £100 A Month, Not In A Lump Sum.

Any Advice On How To Proceed Will Be Greatly Apprieciated. 3 Other Debts I Own Come To £800 And Aren't A Problem But I Need To Clear This Debt To Be Debt Free.

Please Help.

slimwallet

Chris, be very wary what info you provide to your creditors, however you have done very well to go from 22 to 4 creditors.

I am in a similar situation and I look on here to try to find out what settlements are being made with the various finance companies/debtors. I have settled with only one of the 12 debtors for 30% and am considering offering 40% to the other 11 (debt was 144k and is now 122K after 2 years)

Your offer of 59% (10k) seems a good offer, but this may need to be raised as a last resort depending on your research of other settlements with this company but you may wish to sit on it for another 6 months. They will look at your ability and prospect to pay in making their decision, job, payment history, available income, etc. You also need to know when they are likely to sell off the debt before making any further offers, so to help your timing and their likely acceptance.

The 30% settlement I agreed was done through a lot of asking what settlement figs they would agree to and they were very cagey, so you may need to ask several people several times. They were very reluctant to say but eventually after 4 calls they agreed to a 30% settlement (£16k to 4.8k). Make sure any final agreement includes the Full and Final Settlement' words on your credit rating. Suggest you get Payplan to do the offer letter if you are with them.

Good luck.

chrisharding56

Just Had Acceptance On 75% Or Would Have Gone To Court. Better Than Nothing I Supose.
Cheers For Your Response