Full & Final Settlement Success Stories
Full and Final Settlements (F&F) are not easy to achieve, but they are very much achievable with a bit of effort and quite a bit of nerve! The thing with a Full and Final Settlement, is that the more things that stack in your favour the better the settlement.
Third Party Family Friend
Whenever you are negotiating a Full and Final Settlement, never say that you have the funds! It is always best to say that a Third Party or Family Friend will be offering the funds. If you say that you are holding the funds, then there is a chance creditor can gain access to those funds.
Full & Final Settlement and Property
If you own a property and there is equity in the property, then you may stand at a disadvantage. If a creditor knows this, then maybe they will hold out for a higher figure.
Ask for a Full & Final Figure First
By asking a creditor first what they would accept as a Full & Final Settlement, you may be surprise what they will accept. Remember if the debt is old, it may have been purchased by other debt collectors for pennies in the pound. So if you are making what you think is a low offer, this offer may be well above what they paid for the debt in the first place.
Short Settlement Success Stories
This site is littered with lots of full and final settlements, also known as short settlements. Click on the link to see other examples of Full and Final Settlement Success Stories. The thing is, that full and final settlements are achievable, but they are a bit of a fight. Just stick to your guns, even if your offer is rejected, write back to the creditor and explain in more detail why you are only able to offer X amount.
Debt Management Plan and Full & Final Settlement
If you are in a Debt Management Plan (DMP) and considering a Full & Final Settlement. A creditor may not be as ready to accept a F&F, as they may be happy that they are receiving monthly payments. If they are not receiving monthly payments, then they may be more readily to accept an offer.
Like with any form of Debt Solution, do take advice from as many places as possible!
What is a Full and Final Settlement?
Settling a debt for less than the actual value of the debt. Many lenders will accept a lower amount than the total amount outstanding. However in order to get a reduced settlement amount, you will need to show the lender that your are not in a position to pay the full outstanding amount. A reduction of between 10% and 50% are not uncommon.
How Much Should I offer in a Full and Final Settlement?
This will very much depend on your financial situation, do you have any assets, do you own your home etc. The less assets that you have, then I would say the lower your offer could be. The problem though with very low offers is that the lower you go, the more drawn out the process will be. But if you are up for a fight and have no assets, then start really low.
Debt Advice Handbook
From the list of books below, I would definitely recommend the Debt Advice Handbook. From this book you will understand the debt process and how your debt can effect you, You will also be able to use this book to assist you in getting a debt solution to suit you.
|Debt Advice Handbook To understand the law relating to Debt, this is a must have book! It contains the essential information needed by advisers dealing with debt problems.
|Defending Possession Proceedings: is the key ‘homelessness prevention’ handbook
|How to Get Out of Debt is an eight-stage strategy that enables readers to pay off debt and fix their finances for good. This book has it all covered.
|How to Live for Free - I have done a full review on the book here: How to Live for Free
|The Money Diet - revised and updated: The ultimate guide to shedding pounds off your bills and saving money on everything!
|Bankruptcy, Insolvency an the Law is a concise guide to the processes underpinning bankruptcy and personal insolvency.
|With this Book, readers can learn how to complain in a way that is more likely to lead to a successful resolution. The book is also filled with helpful case studies, giving readers real-world examples of how to navigate the process of complaining. Overall, Complaining Cow is an invaluable resource for anyone wishing to properly and effectively make a complaint.