Full and final settlement

Needtobedebtfree_2

Hi

I was hoping to find some advice here on how to negotiate full and final settlement when I haven't defaulted on my payments yet. I have huge tax bill to pay and they won't agree to a payment plan. I am seriously stuck and am worried ccj will impact my ability to work. Is there a way to negotiate with banks for a settlement amount now before they sell my account?

Thanks

funkypriest

Hi didnt want to read and run.

I think it is unlikely they will take a lower settlement amount than what is outstanding as you havent broken the payment arrangement. There is no benefit for them.

Someone should be around soon that may have some more advice on this

fermi

http://debtcamel.co.uk/debt-options/less-common/full-final/

A full and final offer is more likely to be accepted if you have already defaulted on your debts. The longer you have been paying little or nothing towards them, the lower offer your creditors may be prepared to accept. If you have been paying token payments for more than a year and a relation offers you half the amount you owe, then there is a good chance your might be interested. But if you have just lost your job, are young and healthy and have only missed a month’s payment, then your creditors are unlikely to to accept 50%, but you may be able to persuade them with 90%.

Needtobedebtfree_2

Thanks Fermi and funkypriest.. I currently have direct debit set up for all my cards to pay the minimum amount. Do I need to cancel it so it goes into default?

fermi

I would give National Debtline or similar a ring to see what they think. Freephone 0808 808 4000

Stopping payments, defaulting, and getting a F&F could be a long road, and there is no guarantee that you'll get one. It is possible the banks could dump the debt to a debt collector who goes for a CCJ anyway, so although a small chance it could result in what you fear.

What sort of debts are these? When were the accounts first opened on them?

Needtobedebtfree_2

Hi Fermi .
These are all credit cards open for at least 4 year's..

Needtobedebtfree_2

Any advice on how i should deal with this please? I am desperate..

fermi

NeedtobeDebtfree wrote: »

Hi Fermi .
These are all credit cards open for at least 4 year's..

Before or after April 2007?

Needtobedebtfree_2

After April 2007..

Needtobedebtfree_2

:embarasse

fermi

As far as I can see, you haven't got much bargaining power or leverage at this moment in time.

That's why I suggest phoning National Debtline to see what they think.

No harm in trying for settlements to see how far you get though.