Final settlements and affordable payments

Woodsey10

Hi all, I’m at the early stages of my self managed DMP. Waiting for defaults. 

I just wanted to get some knowledge on payments to creditors and final settlement offers. 

Are they related? 

For eg. If, after re-running my soa I find I can pay 75% of the original payments, would they offer a final settlement or be happy to wait it out to recoup the entire amount. 

Or another way of putting it. Once defaults all come in is the idea of a DMP to pay as much as is possible (with a realistic soa) to clear the debt down or pay minimal to encourage final settlements? 

Hope you guys can clear that up for me. 

kimwp

I think the idea is to pay what you can afford while having a life with essentials and basic comforts.

sourcrates

Debt purchasing companies operate a process where by accounts that are being paid on a monthly basis will receive computer generated settlement offers at various periods at their discretion.

Could be after a specific length of time, or by amounts already paid off.

They buy these debts at approx 10% of their face value, so can afford to take an offer to settle, and still make a profit.

It`s entirely at their discretion as and when these offers are made.

You should choose a strategy that uses both monthly payments and also settlements, you do this by saving a good fighting fund whilst making affordable payments.

Woodsey10

I see thank you both for helping me understand this better 😁