If you have access to a lump sum we are able to negotiate with your creditors, offering to pay a lump sump, which is less than the full balance of your debt (Full and Final Settlement of Debt). If the creditor accepts a lump sum it will write off the remaining balance of the debt. Each creditor has its own requirements as to the amount it will settle for but you should be able to look forward to a significant saving of the balance of your debt.
Full and final settlement of debt will suit a range of individual circumstances. For instance you have received a lump sum from:
- a family member or friend
- using equity released from a remortgage or secured loan
- using equity released from Sale and Rent Back (see our Sale and Rent Back page for further details)
- an inheritance
- an insurance payout (eg, Critical Illness, Savings Plan, Endowment)
- a pension lump sum payment
Full and Final Settlement Advantages include:
- You may be eligible for our Debt Write Off service (see our Debt Write Off page for further details)
- You will not have to pay back the full balance outstanding
- Outstanding creditors will get a higher payment per month since the regular payment that was going to that creditor will now be paid to the other creditors therefore getting you out of debt quicker and in charge of your life again
Full and Final Settlement Disadvantages include:
- You may be using monies that you could need in the future (eg if the funds are from a Critical Illness settlement you may need to use some if not all of the money on nursing and other care/aids)
- You may be putting yourself into debt to your relatives or friends
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