Full and Final Settlement

missangel_2

Hi,

I have come into some money and am looking at paying off my remaining debts if I can so just wanted to

I have already paid off my largest loan as they offered me a figure which was 60% off my original debt. I now have four remaining debts outstanding. Three are with HSBC and one with Barclaycard and I've been paying token amounts via Payplan since 2009. Looking on my Payplan account I only have estimate figures on how much I currently owe each creditor.

Should I send a letter just asking for my current balance as of now and then once I receive this from each work out how much I should offer as a final settlement?

Below is the rough amounts I currently owe …

HSBC - £5302.33
HSBC - £2254.06
HSBC - £2261.83
Barclaycard (now with Link) - £4910.71

I also wanted to check whether anyone else could give me tips on how much I should offer and their dealings with HSBC and Link?

Any help with be really helpful.

Thanks

sourcrates

missangel wrote: »

Hi,

I have come into some money and am looking at paying off my remaining debts if I can so just wanted to

I have already paid off my largest loan as they offered me a figure which was 60% off my original debt. I now have four remaining debts outstanding. Three are with HSBC and one with Barclaycard and I've been paying token amounts via Payplan since 2009. Looking on my Payplan account I only have estimate figures on how much I currently owe each creditor.

Should I send a letter just asking for my current balance as of now and then once I receive this from each work out how much I should offer as a final settlement?

Below is the rough amounts I currently owe …

HSBC - £5302.33
HSBC - £2254.06
HSBC - £2261.83
Barclaycard (now with Link) - £4910.71

I also wanted to check whether anyone else could give me tips on how much I should offer and their dealings with HSBC and Link?

Any help with be really helpful.

Thanks

Hi,

Yes, that sounds like a good plan.
Once you have the figures, write to each one offering 30-40% of the balance outstanding, see what they come back to you with.

Remember, it's all a matter of negotiation, so you can always increase your offer.

The key to this is persuading them that the offer you are making represents the best return for them, without having to wait for years of token payments.

National_Debtline

Hi

Further to Sourcrates’ reply, we have a factsheet on making full and final settlements which includes a section on how to work out pro rata offers so each creditor gets offered their fair proportional share of your lump sum. I agree that 30% - 40% seems like a good place to start.

There is also a sample letter on there which you can use to make the offers with:

www.nationaldebtline.org/EW/factsheets/Pages/24%20EW%20Full%20and%20final%20settlement%20offers/Default.aspx

James
@natdebtline