No IVA but looking for a full and final settlement

[Fletch]

I dont have an IVA as I manage to make all my payments on a monthly basis with some juggling.

Anyhow, my debts total around £12,300 mostly credit cards, an overdraft and some energy costs.

I will be receiving an inheritence sum of around £7k and have used a formulae found on the National Debtline to work out pro-rata payments for all these debts, as suggested these are listed on a spreadsheet and being sent to my creditors.

My question is, by wording the letter correctly I want to make the offer but dont want my credit rating effected in anyway, Im not saying I cant make the monthly payments but I am unlikely to have this cash again and things may get more difficult in the future ?

[freelili]

I think the only way to not affect your credit rating is to repay the owed amount in full. Although I am not an expert, this is what I was told by a bank director. Although I guess you could make the offer and request that they mark the credit file as paid in full.

I wish you the best of luck anyhow, sure someone will come along who will be able to advise more fully.

[Fletch]

Thanks Lily
The advice I have found so far suggests that I ensure the letter is "Without Prejudice" and ask that my credit file isnt marked badly.

The worse I can get is a no, even if a few agree then it will be worth it I guess.

[debtfreesusie67]

Hi Fletch
welcome to the forum. As Lily said an expert will probably be along shortly to give you more advice.

[freelili]

I think I know the letter you mean, did this myself but I had a professional do the work for me though. However, you can go to the cccs website and download a full and final offer letter. There are sample letters there for every event. You just include your own details and circumstances.

Good luck.

[Martin2011]

Not sure about that,suspect that Freelili is correct that to avoid any adverse credit rating you'd need to repay the amount owed in full, but not certain. Best of luck anyway, hope it works for you, and if you get a min to let the forum know, it would be interesting to find out the outcome,

Best wishes

Martin

[freelili]

I settled mine without an IVA but it wasnt an easy thing to do. They almost always come back with a no, only when you can demonstrate your inability to make payments and youre putting your best offer forward,do they bend a little and I mean a little. (which is fair enough I guess). I didnt care about the credit rating as it was trashed as soon as I couldnt maintain payments. I guess if you dont ask you'll never know. I wish you the very best with it all.

Good luck.

[TheMatrix]

It will most likely be marked as a satisfied default until the default drops off after 6 years.

[Fletch]

It will most likely be marked as a satisfied default until the default drops off after 6 years.

I'm not sure on this point ? Why would it be a default, if I have always made payments and they then accept a lesser offer for the full and final settlement of the debt without adverse credit affect[?]

[Soulgrowth]

Hi Fletch

I'm not an expert, but I'm putting myeslf in the shoes of your creditors here. If you are seemingly making payments to me on time and appear, from my end, not to be struggling why would I want to accept from you anything less than that I had lent you?

However, if you were struggling, had missed a few payments, informed me that you life may be changing to the extent that you really were going to have difficulty in the future of fulfilling your payment obligations ... and perhaps bankruptcy might have to be a solution ... then I might start to think differently.

... or am I missing something here folks?

Debbie

[Fletch]

Hi Fletch

I'm not an expert, but I'm putting myeslf in the shoes of your creditors here. If you are seemingly making payments to me on time and appear, from my end, not to be struggling why would I want to accept from you anything less than that I had lent you?

However, if you were struggling, had missed a few payments, informed me that you life may be changing to the extent that you really were going to have difficulty in the future of fulfilling your payment obligations ... and perhaps bankruptcy might have to be a solution ... then I might start to think differently.

... or am I missing something here folks?

Debbie

I think this is the general idea;

I will call the helpline tomorrow and report back [;)]

http://www.nationaldebtline.co.uk/engla ... ent_offers

[TheMatrix]

Because your not paying back the full amount under the agreement, may be wrong though. I'd be interested in what they do say in this respect.

[Adam Davies]

Hi
Why not pay use the 7k to reduce your debts pro rata then ask for revised lower monthly payments on the reduced amount owed.
I am sure that any other way will affect your credit rating
Regards

[Fletch]

Thought I would provide an update on this.

So far, BT have agreed to and I have paid without penalty a settlement of £191 on a debt of £360

I have also had a first batch of replies from credit card companies.

MBNA on 2 cards have agreed to a 90% settlement also without any penalty.

Barclays on current account have refused to negotiate twice and Capital 1 credit card also failed to respond.

I have cleared those items in full.

Still negotiating with MBNA and have a 75% target in mind.

[MelanieGiles]

MBNA have accepted offers as low as 30p in the £ in the past from customers directly, so 75% ought to present them with a pretty viable option.