Can I negotiate write off if paying lump sum?

456723

Hi I'm just hoping for some helpful advice....

I'm sorry to say I have quite a bit of debt over credit cards, old bank account overdraft, loan and catologue. I was paying off okay until I was hit with severe depression a couple of years ago. I made arrangements to pay £1 a month to each of them whilst on sick pay. I now am looking at being made redundant. I would like to use the money from a settlement to leave work which wouldn't even cover all my debt (about 4k short) but obviously also need to keep a decent amount back in case I struggle to find new a new role.

I would like to propose to my creditors that I pay off say 50% and then they write off the other 50%. Has anyone done anything like this - I know I have heard some stories but don't know if this sort of agreement should be filed under myths and legends!

Help! So keen to use this as an opportunity to be debt free but can't afford to use all of the money and leave myself in financial dire straits for living until I find a new job!

456723

Think I have found the answer on the internet to my own question and it isn't a myth after all on national debtline .org under full and final settlement offers.






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sourcrates

Hi,

Yes the process is called full and final settlement wearby you offer a certain percentage of the outstanding debt to settle the account.

It's all a matter of negotiation to reach a mutually acceptable figure.

Make sure you use the template letter on the National Debtline website so you have a written record of what's been agreed, never agree to any settlement solely over the phone, as unless you use a correctly worded template letter, creditors are free to sell on the remaining balance of the accounts, and you may find yourself chased for them again.