Full and Final Debt Settlement Offer
Full and Final Debt Settlement Offer is paying of your unsecured debts to your creditors in a lump sum which is less than the full outstanding balance you owe
While you are in debt and your circumstances changes for better and you are in position to settle your debts, you can make an offer to your creditors to settle the accounts.
Firstly you will need to obtain an accurate outstanding balance you owe from your creditors. Please make sure it is not an estimated or a screen balance. Always request to provide the exact outstanding balance in writing.
Once you obtain the amount you will then be able to make them a lump sum offer. The offer you make can be less than the outstanding amount. The offer can be on a pro rata basis to all your creditors. If you are settling a single account you can either settle the account in full or make an offer as per finances available to you.
For paying the lump sum the creditor in return may agree to write off the rest of the debt to settle your account partially or in full.
Never make a lump sum payment until you receive confirmation in writing from your creditor accepting your full and final settlement offer. Make sure that you make the payments within valid date of the offer. Ensure that the creditor will make an entry on a credit reference agency file that the account is partially settle or marked as "satisfied" settled in full. Always keep copies of these valuable correspondences in a safe place as you never know you may need if there is a dispute.
When you approach your creditors with your offers, most importunately you must explain that the money will only be available to you when the offer is accepted. If your creditor accepts the amount, they will inform and confirm when the payment should reach them.
It may be possible that not all your creditors will be willing to settle your debts earlier and may demand full outstanding balance which will include interest and charges previously held by them and not shown on the account. Be prepared to negotiate with your creditors if such problem arise and allow flexibility in your calculation to cover such unexpected additional amount that you may need to pay.
However if you are not in a position to clear all your debts, you can still settle some of your debts by asking your creditors for settlement figures. We have made it very simple for you to calculate the "pro-rata" offers. Please enter your figures accurately to calculate pro rata payment.
You will notice that each creditor gets a fair share of the money available. The creditor you owe the most to will get the major share and the creditor you owe the least to will get the smallest share.
Once you have calculated your offers you need to write to all your creditors showing them the offers you are willing to make. If you creditor accepts the amount, they will inform when the payment should reach them.
Firstly you will need to obtain an accurate outstanding balance you owe from your creditors. Please make sure it is not an estimated or a screen balance. Always request to provide the exact outstanding balance in writing.
Once you obtain the amount you will then be able to make them a lump sum offer. The offer you make can be less than the outstanding amount. The offer can be on a pro rata basis to all your creditors. If you are settling a single account you can either settle the account in full or make an offer as per finances available to you.
For paying the lump sum the creditor in return may agree to write off the rest of the debt to settle your account partially or in full.
Never make a lump sum payment until you receive confirmation in writing from your creditor accepting your full and final settlement offer. Make sure that you make the payments within valid date of the offer. Ensure that the creditor will make an entry on a credit reference agency file that the account is partially settle or marked as "satisfied" settled in full. Always keep copies of these valuable correspondences in a safe place as you never know you may need if there is a dispute.
When you approach your creditors with your offers, most importunately you must explain that the money will only be available to you when the offer is accepted. If your creditor accepts the amount, they will inform and confirm when the payment should reach them.
It may be possible that not all your creditors will be willing to settle your debts earlier and may demand full outstanding balance which will include interest and charges previously held by them and not shown on the account. Be prepared to negotiate with your creditors if such problem arise and allow flexibility in your calculation to cover such unexpected additional amount that you may need to pay.
However if you are not in a position to clear all your debts, you can still settle some of your debts by asking your creditors for settlement figures. We have made it very simple for you to calculate the "pro-rata" offers. Please enter your figures accurately to calculate pro rata payment.
You will notice that each creditor gets a fair share of the money available. The creditor you owe the most to will get the major share and the creditor you owe the least to will get the smallest share.
Once you have calculated your offers you need to write to all your creditors showing them the offers you are willing to make. If you creditor accepts the amount, they will inform when the payment should reach them.
DebtSolution4U.co.uk is not authorised to give advice under the Financial Services and Markets Act 2000. The general information and material provided and published on this website is for interest, understanding and for common knowledge purpose only. The details provided should not be taken as any kind of advice and cannot and should not be used to solve any kind of financial problems. You must take proper advice from authorised firm or financial advisor. We do not recommend or endorse any kind investment, advisor, product or services. We do not offer or imply any kind of advice, financial or legal. It is your responsibility to take appropriate action suitable to your needs.
