Full and final settlements

NicolaElize

Hi everyone

I've got numerous debts including credit card and council tax etc, most of them are being dealt with and are under payment arrangements, I'm no longer feeling too stressed which is great. I owe £6300 on a credit card which I've not paid anything towards for coming up to two years, it's obviously defaulted and been passed onto a debt collectors. Anyway I've just been ignoring the letters and they offered the usual 5/10% off, however now they've offered me to pay just 45% as a F&F settlement which is about 2800 roughly - I just wondered if it's worth trying to squeeze it down a bit more and if so how?
I don't actually have that money but I'm sure I could borrow it from a family member as its a huge amount of money to save.

I have another debt with m&s which is in the same boat, I want to approach them with an offer if said family member is able to help, so does anyone have any advice on what to say?

Any help is so much appreciated as always.
Have a lovely sunny day everyone xx

sourcrates

Hi,

Simply make the offers using the template letter available here :

https://www.nationaldebtline.org/EW/sampleletters/Pages/Full-and-final-settlement-offers-%28sole-name%29.aspx

start low, they can only say no.

Remember, it's all a matter of negotiation !!

But if you are behind with your council tax, then that is a priority debt and should be dealt with before any unsecured credit.

National_Debtline

Hi

Using the template Sourcrates linked to is a good idea and I agree council tax and any other household bills should be your main priority. Make sure the creditor confirms in writing that they accept your settlement proposal before you make the payment.

James
@natdebtline

NicolaElize

Thanks both.

The council tax debt is almost cleared just another two payments to go on that and my OH has a historic debt council tax debt which has caught him up but that's on a payment arrangement which we are sticking to.

Really feel like the end is in sight

Thanks again I will use the template.

NicolaElize

Small update and question. I heard back from the company who offered the 45% f&f, to whom I counter offered 30%. They just said unable to accept etc and since you're suffering financial difficulty please allow us to refer you to step change etc. And fill in the income and expenditure to work out what's affordable monthly.

I thought they'd come back with an offer but no, I must have said the wrong thing. What's my next move? I would much rather beg off family to complete a F&F than offer a pittance for another decade. What would you all do?

Thanks in advance!

National_Debtline

You can respond with an increased offer. If you complete the income and expenditure form and it shows you can only afford small instalments each month it might help to convince them that accepting a lump sum now is a good idea.

Before you do that though you could request a copy of the CCA agreement. If they can’t provide a copy the debt would be unenforceable in court, which would put you in a stronger position to negotiate a F+F offer.

You can request the CCA agreement using the sample letter on this factsheet. Send the request by recorded delivery and include a payment of £1 to make it a formal request.

www.nationaldebtline.org/EW/factsheets/Pages/gettinginformationfromyourcreditors/Page-04.aspx

James
@natdebtline