Save £1000s by making a Full and Final Settlement

Offer Full and Final settlement payments if you have lump sum of money. Don’t just use it to pay of some of your debts without negotiating with your creditors first.

This lump sum can be anything a bonus from work, inheritance or a run of luck at the bingo.

Unless you have paid the money into a bank where you have debts, your creditors do not know how much money you have come into.

Offer what is called a Full and Final Settlement to clear the entire debt. This is an amount of money less than the full amount you are contracted to pay back, but payable now rather than over the duration of the original credit agreement.

Advantages a Full and Final Settlement Offer include:

• Should creditors accept your offer, you will pay less than you would otherwise have to if you were to repay the full amount of the debt.
• Providing that your creditors agree to your offer, it offers you a fresh start.
• There is no harm in asking.

If you are in arrears, on an IVA or debt management programme then your creditors are more likely to accept such an offer as they know there is a chance they may get less back if you fall into further financial difficulties and become bankrupt.

If your offer is to be split up between a number of different creditors, you will have to divide the lump sum using a ‘pro rata’ calculation. This will ensure that each creditor will receive a fair proportion of the available money, directly proportionate to the total amount you owe them.

Please Leave a Comment:-

• Have you saved yourself £1000s by having an full and final settlement offer accepted?
• Can you offer any tips on making a successful offer?

Please share your experience by leaving a comment.
For more advice see Debt Management Plans by FLG Money Limited

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