Living with debt is by no means easy. Often it is through no fault of our own that we find ourselves turning to credit cards and loans to pay for unexpected emergencies, repairs and even living essentials when times are hard. With interest rates being so high and debt collection agencies using aggressive tactics to retrieve money owed, it can be easy to feel like you have nowhere to turn and no way out. But…did you know that you could settle your debts completely without paying off the total amount?
If you have recently come into a lump sum of money, you may wish to use it to offer your creditors something called a full and final settlement. Making this decision would have a positive effect on your future finances as your debts would be written off entirely. No more unaffordable monthly payments. No more calls and letters from your creditors. No more sleepless nights spent worrying about how you will make the next payment.
What is a Full and Final Settlement?
Whether you have acquired a lump sum via inheritance or as a gift from a friend or relative, you can use this money to settle your debts. It doesn’t matter if the amount you possess doesn’t fully cover the amount you owe because, in some cases, debt can be settled by offering a reduced sum to creditors via Debt Information Service and an Insolvency Practitioner. In essence, the Insolvency Practitioner will ask your creditors to allow you pay to a lump sum instead of the full balance. In return, they agree to write off the rest of the debt. If you have a friend or relative who is eager to help you settle your debts, it may be useful for them to know that they wouldn’t necessarily need to repay the full amount owed. In order to settle your debts and give you back your financial freedom, they may only need to pay a percentage of what you actually owe.
How Do I Make a Full and Final Settlement?
Debt Information Service is a UK company able to help with free debt advice and a range of debt solutions including the Government approved IVA for people struggling with unsecured debts.
They will ensure you speak to a qualified friendly Debt Adviser who will listen to your individual situation and advise you accordingly, without judgement and without any obligation that you continue with their services should you choose not to.
Setting up agreements with creditors such as Full and Final Settlements can be a complicated and lengthy process. Luckily, Debt Information Service can oversee the whole process on your behalf. If you have recently come into a large sum of money or you have the offer of help from a friend or relative, Debt Information Service will help you on the way of getting a Full and Final Settlement agreed allowing you to write off your total debt with a reduced sum.
If you have numerous creditors, “pro-rata” offers will need to be made. Each creditor must receive a fair share of the money, with the largest amount going to the creditor you owe the most to and the smallest to the creditor you owe the least. They will also require evidence of how the figures are calculated and how the money will be shared so that they know they are being offered a reasonable amount. Using their specialised training and knowledge of FCA regulations, Debt Information Service recommended Debt Advisers will calculate exactly how much each creditor should be offered and liaise with them continuously until agreements are reached.
It takes just one phone call with the team at Debt Information Service to get the ball rolling. Just a short conversation with one of their experienced team members to provide information about your creditors and your financial situation and then all of your debts being settled at a significantly reduced cost to you.
If you require help with your full and final settlement offers or would simply like some FREE advice on your debt situation, you can contact Debt Information Service via their website – CLICK HERE.