Fixed and final settlement

Pumpkinmad

Such amazing advise on these pages thank you all for making the journey easier. I’m a way off but when get to fixed and final offer times what percentage is average to pay roughly? Also after what period of time will most consider accepting an offer? Thank you 

fatbelly

I can only give vague answers. You are best to keep reading and see who reports what successes with which lenders

I would say that you need to have been defaulted for 6 months before you start negotiations.

Settling at 25% would be good
Settling at 75% might still be worth doing depending on your circumstances

tigergambit

I think this is a difficult question to answer precisely. I made offers of 30% to creditors via PayPlan around 6 months after default and was refused by all but MBNA who accepted. 20 months later a 23% offer was accepted by Ikano, Santander/Moorcroft (CC and O/D) and New Day. So things change and you never know.

My view fwiw is that you need to build up a background story with creditors. They DO keep files on you so you need to be consistent with this. My continuing ability to pay was becoming squeezed by cost of living increases, end of fixed rate mortgage and retirement on the horizon. I made this clear in the paperwork accompanying my offer. May or may not matter but it worked for me.

I don't negotiate, although I know others have done so successfully. To me DCAs seem to be very concerned regarding equality of offer/payment so I use that against them ("Well, I can't offer you more as I'd have to offer others more and I can't afford that"). Those who didn't accept the F&Fs I continued paying and after a while reduced payments due to cost of living or whatever to concentrate their minds a little. This has never been a problem. I will probably go back with another offer at some point.

As fatbelly says you need to have an idea of what % is acceptable to you before you start. What the average is or what others agree is irrelevant as their circumstances differ.

intheblack_sheep

tigergambit said:

I think this is a difficult question to answer precisely. I made offers of 30% to creditors via PayPlan around 6 months after default and was refused by all but MBNA who accepted. 20 months later a 23% offer was accepted by Ikano, Santander/Moorcroft (CC and O/D) and New Day. So things change and you never know.

My view fwiw is that you need to build up a background story with creditors. They DO keep files on you so you need to be consistent with this. My continuing ability to pay was becoming squeezed by cost of living increases, end of fixed rate mortgage and retirement on the horizon. I made this clear in the paperwork accompanying my offer. May or may not matter but it worked for me.

I don't negotiate, although I know others have done so successfully. To me DCAs seem to be very concerned regarding equality of offer/payment so I use that against them ("Well, I can't offer you more as I'd have to offer others more and I can't afford that"). Those who didn't accept the F&Fs I continued paying and after a while reduced payments due to cost of living or whatever to concentrate their minds a little. This has never been a problem. I will probably go back with another offer at some point.

As fatbelly says you need to have an idea of what % is acceptable to you before you start. What the average is or what others agree is irrelevant as their circumstances differ.

When you say 30% and 23%, is that the percentage of the total that you paid, or a reduction of that percentage from the balance?

tigergambit

intheblack_sheep said:

tigergambit said:

I think this is a difficult question to answer precisely. I made offers of 30% to creditors via PayPlan around 6 months after default and was refused by all but MBNA who accepted. 20 months later a 23% offer was accepted by Ikano, Santander/Moorcroft (CC and O/D) and New Day. So things change and you never know.

My view fwiw is that you need to build up a background story with creditors. They DO keep files on you so you need to be consistent with this. My continuing ability to pay was becoming squeezed by cost of living increases, end of fixed rate mortgage and retirement on the horizon. I made this clear in the paperwork accompanying my offer. May or may not matter but it worked for me.

I don't negotiate, although I know others have done so successfully. To me DCAs seem to be very concerned regarding equality of offer/payment so I use that against them ("Well, I can't offer you more as I'd have to offer others more and I can't afford that"). Those who didn't accept the F&Fs I continued paying and after a while reduced payments due to cost of living or whatever to concentrate their minds a little. This has never been a problem. I will probably go back with another offer at some point.

As fatbelly says you need to have an idea of what % is acceptable to you before you start. What the average is or what others agree is irrelevant as their circumstances differ.

When you say 30% and 23%, is that the percentage of the total that you paid, or a reduction of that percentage from the balance?

Percentage paid.