Final settlements and affordable payments

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
    kimwp Posts: 1,765 Forumite
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    I think the idea is to pay what you can afford while having a life with essentials and basic comforts.
    Statement of Affairs (SOA) link:

    For free, non-judgemental debt advice, try: Stepchange or National Debtline. Beware fee charging companies with similar names.
  • sourcrates
    sourcrates Posts: 28,833 Ambassador
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    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.
    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 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- The "provit letter" is here-
  • Woodsey10
    Woodsey10 Posts: 34 Forumite
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    I see thank you both for helping me understand this better 😁
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