Opinions on this full and final settlement.

Thisname

Hi,

I am planning to offer a full and final settlement on my debts in the next couple of months and wanted opinions on if I’m just dreaming or if it might actually be accepted.

I am with StepChange and owe 3 creditors a total of £12,000. I have been in the plan for 6 months and am reaching the point where the debt will be passed on.

Currently and based on what I can afford I will be debt free in 2029.

My mum is nearing the end of her life with pancreatic cancer which has been an awful time for us all. My mum said I would probably be getting £7000 in life insurance and whilst she wanted me to enjoy it I did say that it would be used to clear my debts.

So if I offered this amount what do you think my chances are? Also, do you think the companies would take into account my circumstances and how this money is coming about or do they not really care about the personal story behind it?

I really hope I can get the offer accepted but wanted to get your thoughts on the matter.

Thanks

Ryan

National_Debtline

Hi there,


First of all, I am sorry to hear about your mum, this must be a very difficult time for you. I would suggest you don't make any rushed decisions in a situation like this.

There is no minimum amount required when it comes to full and final offers, and it can be worth starting lower than your top offer so you have some room to manoeuvre if needed. There is also no rule that says you need to use all of this money. You may keep some of it to one side for essentials and emergencies etc.


If you did decide to use the full £7k, your offer would be around 60%, which may be quite appealing to creditors who otherwise would take another 11 years to be paid in full., but it is always at their discretion You can only make the offer and see what response you get. Just remember, it all needs to be agreed, in writing, before you send any money. Good luck,


Laura
@natdebtline

Thisname

I’m guessing it would be unwise to offer it direct to the creditors but wait until it gets passed over?

[Deleted User]

Hello

I'm terribly sorry about your Mum and hope that you can get this financial situation under control soon so you can spend as much time with her as possible.

I have recently made some full and final offers recently, but I would say that if the accounts are already in default on your credit file then don't be in a rush to settle them even though its inviting to get rid of the debt as its off your mind. Often creditors are likely to take a lesser amount, if the debt is with an agency, or has been through several agencies. Consider whether this is or is likely to impact on your credit file and if not, make very small offers (when you feel up to it).

I settled a debt that was 6 years old and still with the original creditor for less than 25% of the debt itself, and it was a massive one (well over our joint annual household income). I had kept up repayments, even tiny ones, so I demonstrated I was willing to try and settle things as best I could and so they agreed to it, in writing, make sure everything is in writing.

None of your creditors know what you are offering to each other creditor so start very low maybe 10% of the balance. The companies should only be interested in knowing that you haven't had to borrow money to pay off this debt, they have no right to know where it has come from and don't feel obliged to tell them, just say it is a family gift non repayable and this is your final offer.

Wishing you all the best