advice please

pretzelgirl

my oh has debts of about 23 thousand,he has come in to some money,but not enough to clear it totally,what do you all thing is our best course of action? should he try to negotiate reduced settlements,and how exactly is this done. many thanx,

GeorgeUK

If any of the debts are with a debt collection agency (DCA), they are probably easier to deal with for settlement. Make sure that it is for "Full and Final" settlement rather than partial settlement and that he receives something in writing before sending off the payment.

There's a letter that you can use from the nationaldebtline site.

Dear Sir/Madam

Re: 4563210025897412

We write with reference to the money which you are claming on the above account.

We can confirm that we are unable to offer to pay the money which we owe in full.

However, I can raise £775 and I want to offer this an ex-gratia payment in full and final settlement of the account. This offer is made on the clear understanding that, if accepted, neither you nor any associate company will take any other action to enforce or pursue this debt in any way whatsoever and that we will be released for any liability.

We also request that, if accepted, you will make an entry on a credit reference agency file relating to the above account as "satisfied" in full.

Payment can be made within 2 weeks of receiving your written agreement of this offer and method of payment.

We look forward to receiving your reply.

Yours faithfully

For accounts that are with a DCA, i suggest offering about 30%-50% initially.

pretzelgirl

just saw you suggested about 30 to 50 % doh..

pretzelgirl

what about debts still managed by the original creditors? tesco credit card,and rbs still are hounding for money will they budge,and be willing to settle? has any one had any experience ??/

GeorgeUK

If you've had late payments, then there is a chance that they will do a settlement. Possibly requiring more than 50% but can't hurt to try. They may come back with a counteroffer i would guess between 70%-80% but you've nothing to lose by trying.