HomeFull & Final SettlementsDebt of £16,348 Settled for £5,022 with Barclays in Full & Final Settlement


Debt of £16,348 Settled for £5,022 with Barclays in Full & Final Settlement — 33 Comments

  1. I am now on debt management. I have credit cards, over drafts, loan with NatWest .. I Offered them 50% to settle as full and final but they refused – any advice how to make this possible ?

    • Hello Golam
      Many thanks for visiting my site.

      The Full and Final Process can be a little bit tricky depending on your circumstances.

      Before we go into a little further, do you have any assets that creditors may be aware of such as a property?

  2. hello,

    yes i have property with mortgage … baught it with 15% deposit 4 years ago. I am able to settle my debts with other lenders ( capital one , barclays, vanquis, pay day loan for 50% ) natwest ask for 75% but I can only give 50%..

  3. Hello Gollam

    I would say that because you own a property, this will be your stumbling block.

    In my experience some creditors are ready to settle far sooner than others, as they would rather have some money now rather than wait.

    I would say that there are a couple of problems with regards to NatWest:

    They are probably aware that you are a property owner
    They are being paid on a monthly basis

    In general some creditors are less likely to settle at substantial discount if you are a property owner! The other issue against you, is that the creditor is getting some money on a monthly basis. So if you look at this from a “greedy” creditors point of view, they are sitting in a comfortable position.

    Quite often I would suggest that monthly payments are stopped being made to a creditor, this is then followed with an offer of a Full & Final Settlement.

    However, in your case stopping monthly payments would be a very dangerous thing to do , as you do still have your property! If you were to stop making the monthly payments to the creditor, this may well force them into taking action against you through the courts. This is very difficult to defend and the end result would be the creditor having a secured charge over your property. This would mean that if they were feeling rather vicious, they could force a sale of the property (difficult for them to achieve). They may however be happy just to have the charge over the property, and would get their outstanding balance once the property is sold by you in the future.

    So in your particular case, you are at a disadvantage.

    How much did you purchase the property for and what is the current value of the property?

    How much are you currently paying NatWest each month and how long have you been paying them for

    Once I have the answers to the above, I might be able to give you some more ideas to think about in order to achieve a Full & Final Settlement.

  4. Current value of the property? £ 223,000 ( current value £225,000 )
    Through Debt Management Plan I am paying them since last 4 months

    Natwest/RBS – PERSONAL CREDIT CARD – £412.52- £1.47
    Natwest/RBS – PERSONAL CREDIT CARD – £2,078.47 – £7.39
    Natwest/RBS – PERSONAL CREDIT CARD – £2,078.47 – £7.39

    Natwest/RBS – BUSINESS CREDIT CARD – £1,729.97- £ £6.15
    Natwest/RBS – BUSINESS CREDIT CARD – £1,128.63- £5.37

    Natwest /RBS –BUISNESS ACCOUNT OVERDRAFT – £2,456.62- £8.74
    Natwest/RBS –PERSONAL ACCOUNT OVERDRAFT – £1,944.00- £6.91



  5. Hello Golam

    Looking at the what you have sent me below, the debts are still with the original creditors. Also looking at the low amounts that are being paid, it will not be long till they are passed over to collection (most likely Triton). I would suggest that you make them written offers on a regular basis, you could also include evidence to show that others have already settled.

    Once the debts are passed over to collection, you do stand a better chance of getting an agreed settlement.

    I would suggest that you get your Debt Management Company to contact NatWest and ask them to stop the interest being charged on that account. It looks to me as though it may not yet be accepted into a reduced payment plan.

    Sometimes when trying to get a full and final settlement it may be worth showing the creditors that the property may be in negative equity. You could ask an estate agent to value the property for a quick sale? Also if there are any other charges on the property, it could be useful making the creditor aware of this.

    Kind regards,


  6. Hi, I am in a similar situation. I am planning to sell my property so I can make full and final offers to my creditors from part of the sale proceeds.

    I have one charge on it though, is it worth paying this off prior to sale and then making offers to my other unsecured creditors? Thanks

    • Hello Scarlet,

      If you have money available now you could make an offer to the lender had that has a secured charge over your property. It may be worth contacting them and first of all asking them what they would accept as a full and final settlement, then going back to them with a lower offer.

  7. Hi
    I am also trying to negotiate a full and final settlement on a credit card balance of 6308
    I am paying reduced monthly payments of 100 and this is with interest frozen.
    The card is registered to my business address and not my home address where i am a part property owner.I didnt think they could touch property with credit card debts but i am obviously wrong there reading the other comments? Just wondering how i should word my correspondance etc

    • I would say that one problem is obtaining a full & final settlement is that they are receiving monthly payments. If they are getting £100 per month, then they are fairly happy. In general F&F’s are easier to achieve if the creditor is getting a very, very much reduced monthly payment, or nothing.

      However in your case I would not do anything drastic until you can establish that your property is not part of the equation!

      You could just contact the creditor and ask them what they would accept as a full and final, you may get a nice surprise.

  8. Hi there,

    I owe £ 7,800 on a Halifax credit card which I thought was sold on but Robinson Way advise that the debt is still with Halifax but they have been appointed as the collectors. I sent them an email earlier saying that a change in my circumstances no longer allows me to make £ 110 payments per month and at most I could pay £30. I advised that a family member could possibly help me out if they accepted a F&F figure of £2,000. I have been paying the debt since 2010, surely they would rather bring this to a close? I have advised that I will make no further payments until they advise in writing if they will accept this. What’s your thought on this? I am not a home owner by the way. And the debt is from 2008, so quite some time.

    Thanks for your advice in advance. 🙂

    • Hello Vicky, many thanks for visiting my website.

      In some cases a full and final settlement can take a very long time, sometimes three years before a settlement is achieved. Obviously the lower the figure that you are willing to offer, the longer it can take for a settlement offer to be achieved.

      In general I would suggest that you stop making any monthly payments to RW. Then inform them that you only have £2000 available through a third party family friend to offer as a full and final settlement!

      Providing that you do not have any assets you should eventually be able to achieve the full and final settlement.

      Sometimes I prefer it if debt is sold on, as quite often once the debt has been sold on they are easier to settle. Also this would give you an opportunity to see if you are entitled to any PPI, as this could be more money in your pocket.

      Hope this helps, JD

  9. Hi Johnny, I thank you for your site as I have found it very useful so far. In fact I wondered if you could help me with some advice?

    I have a DMP through stepchange who manage my creditor natwest for an overdraft and loan totally £12,036.

    It was higher and over the I have paid £6796 so far over the past few years.

    I am hopefully going to receive a bonus from work soon and I was hoping that this may give me an opportunity to pay it off as a reduced lump sum but not sure on how best to approach it?

    I should receive about 2/3K in bonus **fingers crossed**

    Any help, advice is much appreciated

    • It sounds to me like you are looking to do a Full & Final Settlement.

      My first question will be, are you currently a property owner or do you have any other assets?

        • It sounds to me then that you are in a very good position to negotiate a Full & Final Settlement at about 50-70% discount.

          Can I ask how much you are currently paying in the debt management plan?

          • Thank you for your reply. I am currently paying £60 per month and have just increased my payments to £120

            • If you look at this from a creditors point of view, why would they want to settle if they are getting a monthly payment?

              What advice have you been given by Stepchange regarding a Full & Final, or was it them that suggested you increase your monthly payments?

              • they haven’t advised me increasing it, but i was just wanting to pay it off quicker.. they said they couldn’t suggest how much total would work as a settlement offer and read somewhere that they would want to take a portion of it if i went through them. how much do you think they would accept as an offer?

                • Like I said before you should be able to settle at about 70% discount. However, at this rate you will have quite a lot of hassle from NatWest and other collection agencies as the debt is passed on and eventually sold.

                  If you have no assets and you are willing to get loads of calls and threatening letters then you can aim for a very low figure.

                  The other thing to consider would be your credit rating. If this is important then you do not want to rock the boat too much.

                  Maybe the first thing to do is to write to NatWest/collection agency, ask how much they would accept for an immediate Full & Final. They may make you an offer that suits?

  10. Hi there,

    Wondered if you could help. Trying to rebuild credit rating. I have some funds available to make a full and final offer to RBS (11k) and PRA(9.4k). Both are in default and have been so for the past 3 years (£5 a month each). They will accept lower amounts but they will record ‘partial paid’ on my credit file and it’s important that it’s ‘settled’. Big picture is that I need a good mortgae next year and have gone through criteria with my bank (Barclays) that needs to be sorted within 14 months and with ‘settled’ I have a fighting chance. Should I hold out for a reduced figure but ‘fully satisfied’ or should I cut my losses and try to find the full amount?

    • Hi

      OK this is a rather tricky one, as I am more used to achieving very much reduced Full & Final settlements, which would obviously have an impact on the credit rating.

      Have you actually checked out your credit rating? At least by seeing it, you will immediately see where your current problems exist. In general all creditors will mark a full and final settlement as a Partial Settlement, however don’t forget that your original defaults may also still be on the report.

      I would also suggest that you present your problem to other mortgage brokers and see what advice they can offer. Just because Barclays says one thing, does not mean that all mortgages are the same.

  11. Hi , Thanks for you website youtube found very helpful. Have debts over £25,000, main one barclaycard £12,0000 others under £2000. Barclaycard paying £1.00 per month for months and dont seem to be bothered . Want to sell my house and move due to stress and settle debt but will need as much as I can to re house . How long do I wait for Barclaycard to offer me or do I request an offer from them or which way ? Need some help with them . Just managed Virgin re assigned reduced from 70% reduction and settled . Please help .
    This is affecting my health as have sleep epilepsy and cant sleep with all this stress

  12. Hi,
    I am wanting to make a full and final settlement with Barclaycard. Please could you give me some advice on this? My current balance is £3647.34 and I have been paying them £1 for six months now and have just increased this to £30 a month. Is this achievable? They have already registered a default. Thanks.

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