What is Debt Settlement
Debt Settlement is where you have access to a lump sum of money make a full and final offer to your creditors to clear your debts.
More Than One Type Of Debt Settlement
Depending on the size of your lump sum you may be able to repay all your debts and become debt free.
If your lump sum isn’t enough to repay all your unsecured creditors in full, there are various options for you to consider, depending on your financial circumstances.
Full Repayment of some debts: You could use your lump sum to repay one or more of your debts in full, and negotiate an affordable repayment arrangement with the rest of your creditors. However, you do need to make sure this is done as fairly as possible, and all your creditors are considered accordingly.
Short Settlement offer: (sometimes called a ‘Full & Final Settlement’) You could offer some/all of your creditors part or all of your lump sum, on the condition that they agree to write off your remaining debt to them. This is more likely to be accepted if you have little (or no) disposable funds with which to make your regular unsecured debt repayments. Bear in mind that your creditors don’t have to accept your offer – they may simply reject it, or ask you to increase your offer.
Part Repayment: If your creditors have declined your Short Settlement offer (or you’ve decided not to do this), you could consider making a lump sum payment towards your outstanding debts. This means you divide your lump sum amongst some or all of your creditors, and make payments to reduce your outstanding debts to them.
If you think a Debt Settlement could be the solution for you call us on 01656 661426 or
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