Partial settlement

[dalifnei]

Hi

I've been in an informal arrangement (arranged through CAB) with all my creditors for a couple of years, paying about 10% per month and they have mostly been pretty good about it (although a couple of defaults registered). It's some loans and credit cards.

 

Now my dad is offering me a sum, and I want to offer them 10% in partial settlement. Is there any chance they would accept this or will I be wasting my time?

 

Any experiences or advice would be gratefully received!

 

Thanks

[dalifnei]

(I think this may be the wrong forum for this! I'm going to repost in the debt subforum)

 

http://www.consumeractiongroup.co.uk/forum/showthread.php?417538-Partial-settlement&p=4469197#post4469197

 

 

sorry all!!

[dalifnei]

Hi

I've been in an informal arrangement (arranged through CAB) with all my creditors for a couple of years,

paying about 10% per month and

they have mostly been pretty good about it

(although a couple of defaults registered).

 

It's some loans and credit cards. I live in Scotland.

 

Now my dad is offering me a sum, and I want to offer them 10% in partial settlement.

Is there any chance they would accept this or will I be wasting my time?

 

Any experiences or advice would be gratefully received!

 

Thanks

[dx100uk]

partial settlement would be a waste of money as such.

settled is what you want, in terms of CRA files

else the rest will be chased as well.

 

ideally you should go through all your debts

 

send each creditor a CCA request [ as long as they are not Bank accounts or mobile debts]

 

any chance you ccould list the debts& whom you currently pay?

 

have you ever looked at your credit file?

 

do they ALL show...

 

dx

[renegadeimp]

As above. Never make a partial settlement. Its almost always a complete waste of time. You want the 10% to be taken in full and final settlement. if you do this, the letter needs to be specifically worded.

[sequenci]

Hello there, use the sample letter that's on this fact sheet:

http://www.nationaldebtline.co.uk/scotland/factsheet.php?page=19_full_and_final_settlement_offers

 

Yoru credit reference file may have a P flag to show that you settled the debt by using partial funds. My understanding that it makes little difference to your credit score [source: Experian]

[dalifnei]

Aha. Fair comment. Do you think its likely they will take 10% in full and final settlement? That's what I really meant.

 

Many thx!

[dx100uk]

are your clearing your debts to enable say a future mortgage?

 

if so a partial settlement and IF you have any defaults

will sadly prevent this

 

dx

[dalifnei]

Don't think I have much chance of a future mortgage with all this, can't see much hope of that. I just want to stop owing and stop the monthly payments that we can barely afford, even at their reduced amounts. Bankruptcy and formal schemes aren't an option for various reasons.

[dx100uk]

p'haps you don't owe all you think?

 

lot of people and even the DMP people just blindly accept

whatever a DCA says is true

 

the banks add PENALTY charges and PPI that can be reclaimed.

 

who are you currently paying please?

 

tell us about the debts.

 

dx

[dalifnei]

Its 2 big loans and some smaller debts. No insurance taken. They did add some penalties but these are not excessive. The total is about 60k. Through CAB I've been paying 200pm, much less than the agreed amounts. Tbh the penalties they applied at the beginning are less than the interest they froze. They have been quite reasonable.

 

Thanks to my dad I have the chance to try shift these. I think the best option is an offer in full and final settlement, no messing around, but just not sure if they'd bother if I'm only offering 10%. Or maybe they would accept that?

 

 

p'haps you don't owe all you think?

 

lot of people and even the DMP people just blindly accept

whatever a DCA says is true

 

the banks add PENALTY charges and PPI that can be reclaimed.

 

who are you currently paying please?

 

tell us about the debts.

 

dx