Debt Settled Full and Final Settlement Equidebt
Below you will see a full and final settlement was achieved with Equidebt. A full and final settlement on a debt of £7770 for £2625 was achieved by negotiating with the creditor. The debtor was able to convince the creditor that they could not pay the full amount and proposed a lower amount of £2625. The creditor agreed to the new offer, which allowed the debtor to make a one-time payment and settle the debt in full. This was beneficial for both parties, as the creditor received a larger sum upfront, and the debtor was able to avoid the financial burden of paying a large amount of money over a period of time. The full and final settlement was a win-win for both parties.
The Full and Final Settlement Negotiation Process
Full and final settlements can be difficult to achieve, but it is important to remain firm and stick to your offer. Negotiating a full and final settlement can be a long and complicated process, as both parties may have different objectives, which can make reaching an agreement difficult. You probably only have a certain amount of money that you can offer towards a full and final settlement. If you have a number of debts, then you need to ensure that you calculate how much to offer each creditor on a pro=rata split. You can present to your creditors with an income and expenditure, showing that you have insufficient funds to make monthly payments. You will then need to show that you have funds via a third party or family friend, and the amount split between your creditors on a pro=rata split. Offering a full and final settlement based on a pro-rata split, does ensure that all creditors will be offered a fair share. This then would be the maximum that you would be willing to offer. Of course there is no reason why you can not try to negotiate at a lower figure, which of course is better for you and saves you some money.
Here is an example where Equidebt accepted £2,625 against a debt of £7,770 with Santander
Other Full and Final Settlement Examples and Information
You can search this site or click on Full and Final Settlements to get more examples of settlements or more information on how to achieve them. When negotiating a full and final settlement, it is important to start low. This is because it gives you room to negotiate and increases your chances of getting a better deal. Starting low also shows the other party that you are serious about negotiating and that you are willing to compromise. It also allows you to keep the conversation going and to build a better relationship with the other party. Starting low also allows you to get a better understanding of the other party’s needs and objectives, which can help you craft a better settlement that is mutually beneficial. Just remember that your maximum is based on your pro-rata split on the spreadsheet.
What is a pro-rata split when it comes to settling debts?
In the context of settling debts, a pro-rata split refers to dividing the available funds among multiple creditors in proportion to the amount owed to each creditor. When a debtor is unable to repay the full amount owed to all creditors, a pro-rata split ensures that each creditor receives a fair share based on their outstanding balance.