Chances of accepting 50% settlement.
ImGettingThere
Posts: 14 Forumite
Hey everyone!
So, I'm expecting to come into around £5000 soon.
My current debt is just under £10,000 all in . All of which are defaulted so I'm keen to resolve this!
Has anyone got any experience of how low within reason an offer from me for full and final settlement could be?
I can literally offer everyone 50% of what they claim I owe - do you think it's unrealistic to expect acceptance at just 50% of the amount?
The other option is to pay some off in full and leave one credit card which accounts for 50% of the debt and then try and get back to paying that off.
Appreciate anyones thoughts!
So, I'm expecting to come into around £5000 soon.
My current debt is just under £10,000 all in . All of which are defaulted so I'm keen to resolve this!
Has anyone got any experience of how low within reason an offer from me for full and final settlement could be?
I can literally offer everyone 50% of what they claim I owe - do you think it's unrealistic to expect acceptance at just 50% of the amount?
The other option is to pay some off in full and leave one credit card which accounts for 50% of the debt and then try and get back to paying that off.
Appreciate anyones thoughts!
0
Comments
-
What’s your income?
What’s your outgoings?
What are you paying towards your debts at the present?
How many debts do you have?
When are you getting 5k?0 -
I'm self employed.
My business died this year hense defaulting. I have rebuilt it and it's now OK but income is going to be erratic and potentially low between now and next April.
Outgoings vary depending on business expenses.
Currently making no payments.
5 in all - one catalogue and 4 credit cards.
Money will be with me maybe 2 weeks tops. I might be able to top it up to £6000 by the time I'm ready to make offers.0 -
How old are the debts?0
-
Hi there,
Whilst I cannot say how much to use in the settlement offers, there are some key points to bear in mind when negotiating in this way. First of all, ensure that the lump sum you receive is paid into a safe bank account (a bank account that you do not owe any money to).
Once you have decided how much of the money you are going to use in settlement offers, you should divide that proportionally between all of the debts, and write to them with your offer. The creditors must agree, in writing, not to chase you for the shortfall, not to pass to any other organisation who will chase for the shortfall and to mark your credit with £0 and partially settled. If they do this, then you can send the money, but ensure you keep a copy of the letters for 6 years as evidence of the settlement. We have a sample letter to help you - https://www.nationaldebtline.org/EW/sampleletters/Pages/Full-and-final-settlement-offers-%28sole-name%29.aspx
Laura
@natdebtlineWe work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps0 -
Off the top of my head between 5-6 years old.
Long story short - I used retail therapy basically as a way of coping with hating my working life.
Went self employed and well, fell short a few months after starting and went into a DMP to stop them getting wildly out of control!0 -
Start low - you can always go up, and creditors often do not accept your first offer.
For example if you offer 30% (and I'd suggest that's a ball-park starting figure), and then the creditor says 70% you can offer to meet them half way and know that's still in your budget.
For guidance here's what one poster achieved:
https://forums.moneysavingexpert.com/showpost.php?p=69978335&postcount=11790
This discussion has been closed.
Categories
- All Categories
- 343K Banking & Borrowing
- 250K Reduce Debt & Boost Income
- 449.6K Spending & Discounts
- 235.1K Work, Benefits & Business
- 607.8K Mortgages, Homes & Bills
- 173K Life & Family
- 247.7K Travel & Transport
- 1.5M Hobbies & Leisure
- 15.9K Discuss & Feedback
- 15.1K Coronavirus Support Boards