My father in law took out a secured loan£20k loan at 14% interest. He has paid £16,000 to date and missed 5 installments due to loss of job. (no ppi was taken) He has since arranged to pay an additional £100 a month to cover the 5 month shortfall. When I contacted them for an early settlement figure they said it would be £29,000. This is £9000 more than the original loan and he has paid £16,000. TBH - I am no expert in maths or credit agreements but this seems extortionate and wanted to understand what the best way of dealing with this would be..

Hi there, helping out my father in law. He has 10 creditors and an arrangement to pay set up for 9 of them. During the course of paying the creditors my father in law has received early settlement vouchers. Do I need to contact the debt management company to negotiate early settlement or can I contact each of them individually? Finally does anyone know what a typical settlement % a debt collection agency is likely to take? Thanks Sam