Credit & Loan Management Ltd have successfully negotiated full and final settlements of between 50% and 80%.
How is this done and why do lenders accept lower settlements?
One of our customers in debt management could be paying as little as £3.00 per month to one of their creditors with a £20,000 credit card balance.
At £3.00 per month it will take 555 years to clear the debt. So if the lender was offered £4,000 (20%) as full and final settlement, what will they do?
1. Accept the offer.
2. Decline the offer and continue to take the £3.00 per month for 555 years. This basically means the lender will never see the total balance, plus it costs the lender an amount every month to manage the account.
On many occasions lenders will accept the offer, or suggest another offer which maybe higher but still an acceptable deal. Sometime reduced balances can be obtained by making an offer of increased payments.
If you wish to discuss how to make a reduced settlement offer or any other debt problems, either post a comment on the blog or telephone Credit & Loan Management Ltd for free advice on 0800 0727 844, we will be happy to help.