Full and Final Settlement
If you have a lump sum available that will pay off part of your debts, you can ask your creditors to accept a part payment and write the rest off. Or, you may get creditors to agree to you making monthly payments for a set period and then writing the rest off.
Advantages
You clear your debts in full
Disadvantages
You lose your lump sum or asset
The debts will still show up on your credit file and affect your ability to get credit in the future, but your file should be marked to show you have made a ‘partial settlement’.
Feeling overwhelmed by debt or money worries?
Speak to one of our a debt advisors.