Debt management plan - pay off early with lump sum?

WS82

I've had a debt management plan for ages now and have been paying a nominal amount at the beginning of each month.

This month I had a slight lapse of a few days as was away and couldn't maker the payment, and so predictably Wescot Credit Services has been bothering me with frequent calls (I've now paid the amount online, so no reason for them to keep calling).

Anyway, I'd really rather not have this debt of course. I've been wondering for some time, if I did (luckily) manage to save up a lump sum of whatever amount (although less than what I owe), how likely would they (or Cooperative Bank, the initial 'owner', if it was to go back to them) be to accept this payment and write off the rest of the debt?

The debt is a few thousand and at the amount I'm paying off it'll take 74 years to pay off. So if I was able to offer them a nominal lump sum to just pay it all off (I can't afford all of it and for various reasons am not set to be a big earner for a while):

1. What is the history/base rate for acceptance of these kinds of arrangements?

2. How much of the total amount (as a percentage, more or less) might they be willing to accept?

3. Is there a danger that Wescot (or Coop for that matter) would accept the payment, and then just go on and sell the rest of the debt to someone else, meaning I'm worse off than before?

Just curious about my options here. I don't have the mythical 'lump sum' at the moment but if I was able to get it somewhere and the above could be done, perhaps it'd be a good option for me...

Thanks in advance...

fatbelly

Very possible. Probably at 50% or less.

All the details you need here

https://www.nationaldebtline.org/EW/factsheets/Pages/fullandfinalsettlementoffers/lumpsumoffers.aspx

gettingtheresometime

I've this morning rung them about a debt I owe them - balance is now £750 - and they told me that they would accept £700 and that my credit file would be marked as a partial settlement.

Given that theoretically it should have fallen off my credit file (was initially registered in 2008) this shouldn't matter so I sat here pondering what to do.

Personally I'd ring them and say that a relative may be in a position to help you and was wondering what settlement figure they'd accept.

fatbelly

Always best to start the ball rolling in writing (using ND template letter)

Do the fine tuning by phone if you need to

Then insist on the final deal being confirmed in writing before you part with money.

£50 off a £750 debt in exchange for a partial settlement marker is not very good.

gettingtheresometime

fatbelly wrote: »

Always best to start the ball rolling in writing (using ND template letter)

Do the fine tuning by phone if you need to

Then insist on the final deal being confirmed in writing before you part with money.

£50 off a £750 debt in exchange for a partial settlement marker is not very good.

That's what I thought.

I do have the money to settle it in full but given the debt should be off my credit file, and the money is in premium bonds ( which OK isn't paying me interest but you never know!) and the debt isn't attracting any interest, they can whistle for an early settlement

sourcrates

gettingtheresometime wrote: »

That's what I thought.

I do have the money to settle it in full but given the debt should be off my credit file, and the money is in premium bonds ( which OK isn't paying me interest but you never know!) and the debt isn't attracting any interest, they can whistle for an early settlement

Put the offer in writing, so it gets the attention of the organ grinder, instead of the monkey, and you may get a different result ?

Sazzie23

There is an f&f thread you might find they have more advice or tips on there

Saz

WS82

Thanks to all of you for the advice above - am looking at the links and options mentioned...

WS82

Sazzie23 wrote: »

There is an f&f thread you might find they have more advice or tips on there

Saz

Have had a look through the 'full and final settlement' thread and lots of useful info there, thanks. Would 'bump' this thread on to the appropriate f&f thread if I could but not sure how...

Will probably give it (f&f) a go and see how I do. Having said that, reading through the forum does bring up three questions to my mind:

1. I would effectively be making a 'partial' settlement, and this would be reflected in my record for the next 6 years. What are the advantages of making a 'full' settlement though instead (perhaps the answer is too long and complex for here, but am just curious - can't make the settlement so just a question)?

2. I would make the offer directly to Wescot then, there's no use in writing to the original lender (Coop)? From what I gather, Wescot has bought it from them for a certain amount (although was unsure as the thread suggested differences between 'collectors' and those who buy off debt for small amounts), and so Coop has nothing to do with it anymore... The question arises as wondered whether Coop would be a safer bet and able to guarantee, if the offer was accepted, that the rest of the amount wouldn't just be sold on to someone else, I wouldn't have further problems, etc.

3. Um, I forgot...was interrupted while writing! Will return to ask later....

thanks all