Full and Final Settlement

What are Full and Final Settlements?

"Full and final Settlement" in financial terms relates to an offer to repay the percentage of the debt, on the condition the creditor agrees to write off the remaining amount.

How do I do a Full and Final Settlement?

If you find yourself with a lump sum and wish to make a full and final settlement to your creditors, you may be able to work out on a pro-rata basis, proposals that offer your creditors a reduced amount to settle the debt.

Once you have worked out how much you can offer for a full and final settlement for each creditor, you can contact them either by phone or letter with your proposal. If you creditor accepts the amount, they will inform you when the payment should reach them by. Once payment is made, this debt will then be settled.

If you are already with Payplan and would like to offer a full and final settlement to your creditors, Payplan can offer the proposed figures on your behalf.

Please note: There are no guarantees that these offers will be accepted by your creditors.

For immediate and free debt advice please call Payplan free on 0800 917 7823 or use our Debt Calculator to submit your debt problem online.

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