What is a Full and Final Settlement
A full and final settlement on a debt is an agreement between a debtor and creditor in which the debtor agrees to pay a lump sum amount to settle the debt in full. This settlement amount is usually lower than the total amount of the original debt, and the creditor agrees to forgive any remaining balance.
Debt of Nearly £6000 Settled for £1500
This debt of £5924 was recently settled for £1491 in a full and final settlement. This was an excellent outcome for the debtor as it represented a saving of £4433. This was a great result for the debtor as it meant that the total amount of the debt was resolved for less than a quarter of the original amount. It also offered some peace of mind for the debtor as they were no longer liable for the full amount of the debt. The creditor was also pleased with the outcome as they were able to recover some of the debt that they were owed, rather than receiving nothing. This debt of £5925 owing to HBOS was today settled for £1491 with debt collection agency Apex Credit Management.
How Hard is it to Achieve a Good Full and Final Settlement
Full and final settlements can be a difficult task, but with the right approach, they are achievable. Settlements are a great way to get rid of debt.. It is important to be organised, have a budget, and contact the creditor in writing to negotiate. Once you have agreed to a settlement amount, you need to be sure to make the payments on time. It is also important to keep track of the payments and make sure that the creditor is honouring the agreement. With the right approach, full and final settlements can be a great way to get rid of debt and put you back on the path to financial freedom.
How Much Can I Settle a Debt for in a Full and Final Settlement
As a general rule, the less you can pay or are willing to pay in a full and final settlement, the harder the fight is going to be. This site is littered with many good stories of full and final settlements. Just do a search for full and finals settlement and you will come across many results on the subject. Also, some creditors are easier to negotiate with than others. Often the age of a debt can also come into play. If a debt is very old, then the creditor may well put up less of a fight to get a higher settlement figure.
If you have a number of debts that you want to negotiate in a full and final settlement, then it may be best to complete and income and expenditure. Included in that income and expenditure you want to show the lump sum that you have access to (third party, family friend). This lump sum should then be split among the creditors on a pro-rata split. Once again searching this site for Full and Final Settlement will bring up the spreadsheet used for that.
Full and Final Settlement Spreadsheet Evidence
The idea of presenting a spreadsheet of your finances is to prove to the creditors that you do not have sufficient funds to pay off your debts. It can also be worth providing additional information, such as medical evidence etc, basically anything that shows your dire situation.
Always Negotiate with Creditors in Writing
Negotiating with creditors in writing is an important part of managing debt. By negotiating with creditors in writing, you are taking control of the situation and ensuring that the conversation is documented. Written communication also gives you the opportunity to articulate your goals and needs clearly and express your concerns in a way that can be understood by the creditor. Additionally, having a written agreement with a creditor can provide you with legal protection if the creditor does not comply with their part of the negotiated agreement. Negotiating with creditors in writing can also help you stay organised and keep track of who you owe and what you agreed to. Ultimately, negotiating with creditors in writing can help you better manage your debt and keep your finances in order.
More Full and Final Settlement Success Stories
If you a looking for more examples on Full and Final Settlement Success Stories.