Partial Settlements, what to offer creditors.

[WolfsCastle]

Good Afternoon, I'm really hoping the community can advise.

I am currently on a Debt Management Plan and have been for roughly 14 months. I have driven down my debt position by recently settling a non-statute barred debt at 50%. The debts are from the end of 2022, so whilst I could CCA I'd imagine the debt collection firms I'm dealing with would have all the appropriate paperwork. I am due to complete paying these debts in 2027 if I don't settle anything early.

There is the possibility I may be able to partially settle some of these debts shortly, but what sort of percentage should I be starting with when negotiating with creditors? What tactics should I use when approaching debt collection agencies?

I understand that it's dependent on circumstances, but any guidance on where I should start with these creditors would be great.

[echat11]

Hi Wolfscastle

Welcome to LB

The debts would have been bought for 'pennies', so start with 'low' offers.

Amend the following template, add your personal circumstances e.g. health etc.

https://nationaldebtline.org/sample-...tlement-offer/

Read the whole document, negotiate hard. Try to settle on 15%.

https://nationaldebtline.org/fact-sh...ent-offers-ew/

[Matty B]

If the DCAs are getting reasonably large payments off you now, they might not want to settle. Of course there is more to them being able to sue you than simply a cca document.

[WolfsCastle]

Thank you for your replies so far. I have read through the documents highlighted bye echat11

Continuing on from this, I have a stubborn creditor that is outright refusing to move at all and is demanding a 100% repayment of their debt. Their debt is to a value of 1.2k. If I sent them full details, a budget sheet and appropriate circumstances might this help? I have written them a letter as per the template linked to myself above.

[echat11]

Thank you for your replies so far. I have read through the documents highlighted bye echat11

Continuing on from this, I have a stubborn creditor that is outright refusing to move at all and is demanding a 100% repayment of their debt. Their debt is to a value of 1.2k. If I sent them full details, a budget sheet and appropriate circumstances might this help? I have written them a letter as per the template linked to myself above.

It might have been idea to send the letter with income and expenditure sheet. Fill in the Income and Expenditure sheet, this is a non - priority debt, the Court would only ask you to to pay what you can afford, so if you are left with £1 each month so be it.

When you fill it in, take into consideration the Cost of Living, food, energy etc. Only commit to what you can afford.

https://nedcab.cabmoney.org.uk/

[DE DOGS]

Same situation,Debt buyer point refuse any offer, they want full payment, I cannot disclose any further information,apart from the debtor now has Dementia,we believe through he stress.