Settlement figures

RC_46

Hi.

I am new to the boards, and this is my first (probably of many!) question...

When a creditor mentions in a letter that you may be entitled to a 30% discount for settlement, is this just a way of getting you to call, or can they really give you a discount? I came to an agreement with them a while back, and they mentioned a settlement discount of £70, but the girl on the phone said it wasn't worth it, for what it would do to my credit file (didn't really understand this). The full amount outstanding is now £942, so 30% off this would be a huge help!

But I have now received a letter asking me to call them to go through my income and expenditure again, and it mentions the 30% discount. If offered this discount, would I still be able to pay the balance in installments? What is the general rule of settlement figures, am I within my rights to request one?

The company (now a debt company, initially a mail order catalogue) were extremely intimidating when agreeing my current installment figure, I can't even afford this one and am really struggling. I only paid half earlier this month (on the due date) and am paying the other half next week, although I did write to explain. This is probably why I have received the letter :rolleyes:

Another quick question while I am here (!). I was overpaid by an ex employer. They messed up my pay very badly when I started, and I thought the last payment was correct. I wrote and asked for a full breakdown, and it appears that they have in fact overpaid me. They are now demanding the full amount back (£1,400). I am already paying back £14,000 worth of debts, all on payment agreements, so there is no way I can pay this. Can I offer them installments? Would they need to see an income and expenditure breakdown?

Many thanks in advance!

GirlRacer_2

Anyone able to help here?

jmhgibson123

i would imagine if the company offers you a discount and you can afford it snap it up but don't let on you can pay it straight away the offer is usually there for about 21 days just say you'll see if you can raise the money and get back to them, i think the credit file thing will just be that its not a full settlement but a partial settlement with may affect you but if you already have defaults then your affected anyway.
with the work thing you could get in touch with c a b regarding whether they can take it all back at once
good luck

stapeley

Are you on DMP ? Are your debts with a DCA ?

tinymcfc

Which debt recovery company is it...?

CCCS_Sarah

Hi RC_46,

Welcome to the boards.

When creditors/ collection agencies offer settlement figures they generally offer them to clear the debts in one go or sometimes up to thee payments.

Are you on a DMP with any company at the moment? If so you will be able to add the debt from your ex employer. As you no longer work for this company you could offer reduced payments much the same as any other unsecured debt. The reason companies ask for your income and expenditure is to look at how much you could afford to pay to them as a monthly instalment.

If you are having problems with a number of debts you may benefit from using Debt Remedy. Debt Remedy will help you complete a financial statement. Once you have inputted your income and expenditure the system will let you know exactly where you stand financially and the best way to deal with your situation. This link will take you directly to Debt Remedy and it only takes a few minutes to complete and is free.

If there is anything I can help with give me a shout