Final settlement figure

Barpeeler · 10 June 2015 at 12:28PM

Hi

I have an outstanding balance with a collection agency and wonder if anyone could give me some sort of idea on a final settlement figure to offer them?

The balance is £1150, I am currently paying £50 a month.
This has cleared off my credit file and I have no problems making any payments and sometimes find myself able to pay more.

If I could save money I could also find the money to pay a final settlement, should I wait for them to come to me and offer it or should I contact them with an offer??

Thank you in advance for any helpful reply

Tixy · 10 June 2015 at 12:32PM

If you are in a position to make an offer then I would do so, not wait to see if they offer one.

Its advised to make any offer in writing and to always get written confirmation from them before you make the payment.
This contains some useful advice and a template letter https://www.nationaldebtline.org/EW/factsheets/Pages/24%20EW%20Full%20and%20final%20settlement%20offers/Default.aspx

In terms of how much to offer, worth starting low as you can always increase the offer if rejected (assuming you can afford to).

National_Debtline · 10 June 2015 at 12:43PM

Hi

As Tixy says, there’s no harm in you approaching the debt collectors with a settlement offer. The amount they’ll accept might vary depending on their attitude and your circumstances so it’s difficult to suggest a figure to offer.

I think a lot of people start around the 30% mark and work upwards if necessary. In your case you’ll pay off the debt in 23 months anyway so I can imagine the debt collectors would want a higher percentage.

James
@natdebtline

Barpeeler · 10 June 2015 at 12:56PM

Thanks for the advice, I was hoping that as it's not on my file anymore they would realise that I am happy to carry on paying what I am already, and maybe it would be more beneficial for them to clear the debt for a lot less?

If I'm being honest I was hoping to be able to clear it for around £500.