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Full and final satisfaction – from StepChange Debt Charity
We often get asked about how debts get settled early. This happens when some money suddenly becomes available to our clients. It usually comes from family members, unexpected inheritance, an insurance pay out or a successful payment protection insurance (PPI) claim (find out here how to reclaim PPI for free).
If you’re a StepChange Debt Charity client and find yourself in receipt of some unexpected funds, give us a call as we may be able to make an offer to your creditors which will settle your debts. There is no charge for this “full and final settlement” service.
How does full and final work?
Previously if clients came into some unexpected money, they had to write to each creditor, making individual offers. This was a complicated process and clients could find themselves in difficulties, paying too much to clear one debt and not having enough left to clear another. There was also always the danger that the creditor could chase what remained of the debt later.
Our new service eliminates the need for clients to negotiate with creditors, all we ask for is the most recent balance on the debts and details of the total amount money you have available to offer.
Our new team
The settlements team is one of the newest at our charity but it’s staffed by some of our most experienced debt advisors who’ll speak to creditors on the client’s behalf and make offers based on what funds are available.
We have contacts at all the major creditors which means we are well-placed to make offers on clients’ behalf. We don’t negotiate as such, but we will listen to any counter offers from creditors and report these back to you and wait for your further instruction.
How much will be written off?
You have probably seen ads which claim to be able to get ‘your debts written off’. These usually refer to IVAs or assisted bankruptcy . A full and final settlement offer means that some creditors will possibly write off a percentage of your debt.
We don’t have set figures for what you can offer creditors, indeed the funds sometimes come from a third party like a relative. In some cases we may even refer you for a lump sum IVA if this is seen as a better solution.
Where can I get the cash?
As we said, third parties may offer funds to help you clear your debt, money could also come from inheritance, redundancy, PPI claims, selling a property or even equity release. There are no fixed figures that your creditors will accept we can only advise you based on funds that you have in place already.
Just be reassured that we’ll make the process as hassle free as possible for you – most full and final settlement cases are completed within 6 weeks. However, we cannot guarantee that your settlement offer will be accepted by your creditors. This is an all new service for our clients and importantly, it’s completely free of charge.