This is where to post your first questions about any debt problems you have
By Snard
#33370 Hi,

I owe £12,000 in credit cards across 3 creditors. I am currently 6 months into a debt management plan with stepchange which appears to be going well. None of my debts have been passed on to a collection agency.

My mum recently died and I have been left with £6,500 to use as a lump sum and I wanted to know if this would likely to be accepted by the creditors as a F+F settlement?

Or should I wait longer for it to be transferred to a collection agency?

Any advice would be great as I am so desperate to get it signed off and finished.

Currently at the rate I pay the debt would be repaid fully in 11 years.

Thanks.
User avatar
By Hayden
#33371 Hi Snard and welcome to the forum :)

As far as I am aware creditors will normally be receptive to a settlement offer if you have been in a DMP for 6-12 months. Given you can offer 50% of the debt owed I think you have a pretty good chance of success.

I note you are with StepChange. Have you spoken to them about making an offer? As long as you are willing to settle all your debts at the same time then I believe they will be able to help you. They can also advise on whether they think it is worth making an offer now or waiting another 6 months.
By Snard
#33372 Thanks,
I will contact stepchange to get their advice. I don't mind holding on a little longer but of course and very keen to try and get the F+F if I can.

So 50% seems reasonable?
User avatar
By Hayden
#33373 I think 50% is a sensible offer yes. I am certainly aware of similar situations where creditors have accepted that kind of amount.

Please let us know how you get on and what StepChange say :)
By Snard
#33374 Just a follow up question. Is it ok to offer a F+F settlement that is less than the lump sum received? I am planning to offer half the amount but have more coming to me than that but am keen to give myself a buffer as obviously I have no access to credit.

Do I just disclose what I am willing to offer?
User avatar
By Geraldine
#33375 Hi Snard

That is a good question. There is no need for you to disclose exactly how much you are going to receive. You should keep this close to your chest and just offer the 50% amount.

It is possible that StepChange will ask you how much you will receive but you do not have to tell them. Ultimately you are simply making an offer of settlement to your creditors which they are at liberty to accept or reject.