Settling debt collection early.

David_Woodward

Hi all.
A real newbie, so hoping I've posted in the correct forum.

In 2012 I had run up personal debts via 2 credit cards and 2 loans of circa £40k.

As I was no longer able to meet the payments, a friend acted as my 'agent', contacted the 4 companies and negotiated for the interest to be frozen and manageable amounts to be payed individually to each of the respective companies I owed.
Each one of the companies passed the debt to a collection agency, and since then I have payed them monthly via direct debit (have never missed a payment btw)
I havent yet worked out a current amount that I owe but believe it do be around half the original debt.

I may soon be in a position to be able to pay off each one of the 4 debts, and in the past I have been offered the opportunity from the agencies to settle early for an amount that is less than owed.

So what I would like to know is if I do approach them to make full and final settlement, is there a general rule of thumb as a percentage I should offer them?
If it's say 70% as a norm, should I offer 50% and hope to settle at 60%?

Any help and advice with this will be gratefully received.

And btw, anyone wishing to tell me I should morally be paying it all as I owe it; many thanks in advance for your thoughts. You need not post it now

cybertortoise

Hi. It's my understanding that you would go in lower so they can come back with a counter offer. If you were to offer 75% they could come back at 90%. They don't have to take any offer you make though.
I'd probably go in at 50% and see what they said. But keep in mind they'll probably mark your credit file as partially satisfied rather than settled so it will still affect your credit until the 6 years is up and it drops off your report.