Debt Questions forum. General questions on debt issues.

Moderators: TalbotWoods, JaneClack

By Qwerty
#6834 In the past week i learned that im getting £2,500 inheritance and ive decided that im gonna use it to try and pay off my debts. Having read a couple of posts on here, i know that some companies will accept a reduced settlement. Ive got 5 creditors:

Mastercard- £1000
Halifax overdraft- £1800
Halifax Visa- £1300
Capital one- £1100
Orange- £950

I know i wont be able to clear all the debt with the money but hopefully itll go some way. From peoples experiences, does anyone know who'll be most likely to accept a reduced settlement and what theyll accept?

Cheers :D
User avatar
By JaneClack
#6838 This question is frequently asked and we always have to say - we don't know. You have to make the offer and see if they would accept. If you are managing to make payments then NO, they are not going to. If you are not managing to make payments, have no assets and no likelihood of ever earning enough to make the payments then they may well accept a reduced offer. I have seen them accept 80%, 50%, 30% and even write off but only in exceptional circumstances. You have to try it and see and ensure that you say it is coming from a third party!

Good luck!
By Qwerty
#6872 just for an update, the halifax will accept £1500 for the overdraft, orange will accept £720 anc capital one £1032
User avatar
By JaneClack
#6877 which is more than your inheritance but would get some creditors out of the way....

However beware of Halifax taking out the full contractual payment for your credit card with them if you are making reduced payments. They have the right of offset which means they can take money from a healthy account to pay another one that isn't. I've seen them do it and cause an overdraft and as it is unauthorised it is at a higher rate.

Go for it if you feel it is a good deal - I don't think they're giving you much of a reduction myself! Keep trying and see if you can reduce them.