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How does one make offer to creditors?
bjorn85
Posts: 3 Newbie
Hi all,
I have a total outstanding debt figure of 4000 pounds. I have been able to raise a lump sum which I'll hopefully be able to use to make an offer to the creditors.
The rough breakdown is: £2400 to Hoist Finance (old credit card) and £1600 to Cabot (old loan). A couple of years ago I ran into some financial difficulty with the original lenders and defaulted, it got silly and only now have I been able to ruste something towards resolving this.
Is there an acceptable sort of calulation to work out what I can offer these companies?
Any help shall be gratefully received.
Cheers
I have a total outstanding debt figure of 4000 pounds. I have been able to raise a lump sum which I'll hopefully be able to use to make an offer to the creditors.
The rough breakdown is: £2400 to Hoist Finance (old credit card) and £1600 to Cabot (old loan). A couple of years ago I ran into some financial difficulty with the original lenders and defaulted, it got silly and only now have I been able to ruste something towards resolving this.
Is there an acceptable sort of calulation to work out what I can offer these companies?
Any help shall be gratefully received.
Cheers
0
Comments
-
Hi,
No, it's not really an exact science, pitch your first offer quite low, you can always negoatiate upwards.
Do everything in writing, using the Natiobal Debtline template letter :
https://www.nationaldebtline.org/EW/sampleletters/Pages/Full-and-final-settlement-offers-%28sole-name%29.aspx
Have fun, and good luck.I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter0 -
Hi
As well as the sample letter sourcrates linked to this factsheet might be useful. It talks about how to work out your offers on a pro rata basis, where each creditor gets their proportional fair share.
www.nationaldebtline.org/EW/factsheets/Pages/fullandfinalsettlementoffers/lumpsumoffers.aspx
James
@natdebtlineWe work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps0
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