Settlement with creditors

Pearcyovmidd

Hello all after coming on this forum at my wits end 2 years ago I set up a DMP with StepChange who have been absolutely amazing our debt was a mind boggling 95k and after a lot of patience we are now at 35k still a lot but not long to go.  We are due to come into some unexpected funds and the focus is now on clearing the debts through settlement.  If we carry on paying StepChange the DMP will end in Nov 2025, with this in mind what is the typical starting point % of settlement with our creditors? I’ve read what StepChange say which is 75% of the debt as settlement? But is this too high ? Our debts range between 11k max through to 5k, 2k etc.

Any advice on how to negotiate settlements would be appreciated namely a starting % of the debt.

thanks 

Pearcyovmidd

The debts are with

Tesco Bank Loans, Virgin credit card, intrum Uk, 
Link financial, Santander credit card, HSBC, link financial, pra group, novuna 

stu12345_2

never known step change to say 75% or any figure at all 
your dmp is soonish to end , my concern is creditors know that and you have paid your dmp on time and fast.
they could offer little discount cos they know that fact in that they could just ride it out and wait till total is paid off.

two things ,if you make a really low offer say 20 to 30%  ,always ask for a counter offer reply from creditors. in order to see what sort of price they will accept, rather than diving in with 75% and them saying yes that's fine, never knowing that they would have went lower.

so get that counter offer reply, and check when it's valid and total amount cos you are still paying a dmp and obviously money is due out monthly in the settlement balances offered

so watch for the cut off dates and any dmp payments still to go through affecting the balance owed and hence the discount price

also speak to your creditors in £s
 not in %s, tell them you can offer eg £1000 , don't say 27% or whatever, say it in pounds and pence