How to negotiate settlement?

MinnieMouser · 25th March 2007, 21:51

Hi Everyone,

Now I keep reading on here, and also hearing from peeps elsewhere, about settling with a creditor in the region of 30-40% of the original debt. I can't seem to get a better offer than 20-25% - one doughball company even hit me with a settlement figure of 105%.

Are there any techniques, tried 'n tested methods or recommendations for negotiating settlements? What are your experiences?

Thanks,

MM

PS - Please complete the poll if you've negotiated a settlement(s)!!
PPS - If possible, please post up some details of the settlement, such as when, the amounts & the company. Maybe we'll find some patterns!!

poochball · 25th March 2007, 22:04

I have managed to get settlements of 30% by saying I have received an amount of money say for example £600 and paid off a debt of £900.

I basically said I had £600, and I would like to pay this in full and final settlement of my liability.

Depends on how lucky you are on the day though!

gizmo111 · 26th March 2007, 12:05

Quote:

Originally Posted by poochball

I have managed to get settlements of 30% by saying I have received an amount of money say for example £600 and paid off a debt of £900.

I basically said I had £600, and I would like to pay this in full and final settlement of my liability.

Depends on how lucky you are on the day though!

This means you settled at around 70% with a 30% discount.

sequenci · 26th March 2007, 12:24

National Debtline England & Wales | Debt Advice | Factsheet 24 Full And Final Settlement Offers

poochball · 26th March 2007, 19:50

Quote:

Originally Posted by gizmo111

This means you settled at around 70% with a 30% discount.

:o

Ok lol yep I mean I got a discount of 30%

I was just testing

tifo · 26th March 2007, 21:27

you can generally settle for 30% of the debt (70% discount) but with some talking maybe settle for 20% of the debt. I get letters all time offering a 75% discount and only 25% to pay (if only i had the money).

i think anything over 10% of the total debt gives them a good profit.

MinnieMouser · 27th March 2007, 02:13

Hi Everyone,

So are these debts being settled with the original creditor or a dca? Is it best to start negotiating at the lowest possible amount and haggling back and forth until a compromise is reached? Or stick low and give them the impression that you'll disappear off the radar down a bankruptcy blackhole so they'd better take what they can right now?

Thanks for the replies so far by the way - it's good to hear what your thoughts and experiences are...

MM

PS You can vote more than once per time on the poll if you've had several different settlements.

tifo · 27th March 2007, 11:05

its best to negotiate with the original creditor, but if that is not possible then of course the DCA.

you should start low and work up, maybe from 10% upwards.

there are many ways to make them accept your proposal, one being bankruptcy and another one emigration away from the UK.

if i was going away for my work, then the DCA has more of a chance of accepting your offer as you will be away from their radar for many years and maybe forever if you never return.

MinnieMouser · 27th March 2007, 23:36

Ahhhh..good idea Tifo..perhaps a mock emigration is in order

I wonder where I'll move to..hmmm

MM

cresswell80 · 28th March 2007, 00:46

Quote:

Originally Posted by MinnieMouser

Hi Everyone,

Now I keep reading on here, and also hearing from peeps elsewhere, about settling with a creditor in the region of 30-40% of the original debt. I can't seem to get a better offer than 20-25%

Hi MM.... I'm confused! Why do you want to settle at 30-40% of the debt if you're being offered 20-25%?? I'd snap their hand off at 20%....

eg. 10k debt.... 40% = 4k, 20% = 2k....i know which i'd prefer to pay lol!!

MinnieMouser · 28th March 2007, 01:02

Oh yeah, that is a little confusing... What I meant to say is I can't seem to get better than a 20-25% discount

cresswell80 · 28th March 2007, 02:04

Quote:

Originally Posted by MinnieMouser

Oh yeah, that is a little confusing... What I meant to say is I can't seem to get better than a 20-25% discount

ah I get ya!!! Well I haven't done a F&FS but I'd say a 25% discount seems low!!

tifo · 28th March 2007, 15:14

Quote:

Originally Posted by MinnieMouser

Ahhhh..good idea Tifo..perhaps a mock emigration is in order

i didn't mean 'mock'. i wouldn't do that to a DCA!

some people really do decide to move for real.

maybe later they actually do move or change their mind.

MinnieMouser · 28th March 2007, 15:17

Quote:

Originally Posted by tifo

i didn't mean 'mock'. i wouldn't do that to a DCA!

some people really do decide to move for real.

maybe later they actually do move or change their mind.

Oh no of course not... I would never do such a thing either...ahem

Vampyra · 28th March 2007, 15:25

I'm not eligable to vote on this but I've just been offered a 50% discount on a debt I don't own! Marvellous! Cheap at half the price..................NO T!

MinnieMouser · 28th March 2007, 15:50

Quote:

Originally Posted by Vampyra

I'm not eligable to vote on this but I've just been offered a 50% discount on a debt I don't own! Marvellous! Cheap at half the price..................NO T!

At least they're willing to give you a discount

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