How does it work?
If you can pull together a lump sum of money large enough to cover most of your debts, you can offer your creditors a 'full and final settlement' – that is, a one-off payment that writes off the rest of what you owe altogether.
You may come by a lump sum of money by selling an asset – such as a property or vehicle – receiving an inheritance, or being given money by family or friends.
If it’s not enough to cover your total debt, you need to work out how much to offer to repay and then put this in writing to your creditors. For instance, if the lump sum you have is 75% of your total debt, you should offer each creditor 75% of the amount you owe them.
However, you may find that not all your creditors are prepared to accept your proposed settlement. In that case, you’ll need to negotiate and try to find a solution that satisfies everyone. Make sure you keep all correspondence involved in your negotiations, just in case you ever need to refer back to it.
The longer it’ll take for you to repay your debts, the more likely your creditors are to agree to a settlement. But in matters like this, it’s a good idea to get advice from a free, independent and expert service like ours.
Get in touch with our team today by calling 0800 138 3422 or filling in our short assessment form.
What to expect
- We’ll use the information you’ve given us to establish the nature and urgency of your debt.
We’ll continue to advise you and give you a detailed analysis of the help available to you. We can do this by booking you in for a face-to-face appointment at your nearest centre, or a telephone or video call advice session or continue to advise you by message.
You choose how we can help you
We’ll explore your situation and get all of the information to be able to provide you with advice. We will then discuss your options and talk you through the pros and cons of each.
- We’ll establish the best possible solution and help you to resolve your debt – whether that’s by means of advocacy, representation or negotiation on your behalf, or by helping you write letters and supporting you throughout the process. If you need advice from outside of our services then we can refer you for further support too!