Debt Settlements

If you have a lump sum available, you may be able to settle some or all your unsecured debts with a one-off payment.

How does a debt settlement with PayPlan work?

We offer a free service to help our clients negotiate debt settlements with their creditors, making the process as smooth as possible.

There’s no set amount of lump sum required – you can let us know what you have, and we’ll check if your creditors will accept it.
If your creditors agree to a full settlement, you’ll make one payment that clears everything you still owe.
If you don’t have enough to settle the full amount, we can request a discount for you.
If your creditors accept the offer, you’ll make the payment and we’ll handle sending it to your creditors.

You have the option to handle the settlement directly with your creditors, but we offer this service for free to make things easier for you.

Am I eligible for a debt settlement?

A debt settlement could be an option if:

You’re struggling to keep up with your current payments.
You have a lump sum available.

Note: This option is available across the UK, and we can also help clients living abroad with UK-based debts.

Where can the lump sum come from?

You can use funds from:

The sale of property or assets
A gift from family or friends
Equity release
Inheritance
Savings
Other sources

Debt settlement options

Most clients who choose to make a settlement are in a Debt Management Plan (DMP) with us.

If this sounds like you and you’re interested in looking into this further, we can explore different settlement options such as:

Fully settle all your debts

Use your lump sum to clear all your unsecured debts in full.
Once paid, these accounts will be marked as “fully satisfied” on your credit file, meaning they’re considered resolved.

Do a partial settlement to clear your debts

If you don’t have enough to pay in full, we can negotiate with your creditors to reduce the total amount you owe.
These accounts will be marked as “partially satisfied” on your credit file for six years, reflecting the reduced

Settle some of your debts

If paying all your debts in one go isn’t possible, you can choose to settle some debts with the lump sum and continue repaying the remaining debts under your DMP (unless a more suitable solution becomes available to you).

Whatever route you take, these options provide flexibility depending on your lump sum availability and situation, and we can help you explore the best path forward.

Get advice now

What are the pros and cons of debt settlement?

Benefits of debt settlement

payments: With a full settlement, you make one single payment instead of ongoing monthly repayments under your DMP.

Things to consider

A short settlement will appear as “partially satisfied” on your credit file, which may affect future lending.
Default notices or court actions (e.g. CCJs) will remain on your credit file for six years, even after settlement.
If creditors reject the offer, you’ll remain liable for the full debt.
If you don’t clear all your debts, you may need to consider continuing with your DMP or exploring other solutions for the remaining balances.

Which debts can be settled?

Debt settlement can apply to a wide range of unsecured debts, including:

Bank loans
Overdrafts
Credit cards
Personal loans
Student loans (if they’re not deducted from your salary already)

You can’t include secured debts (e.g. mortgages) or priority debts (e.g. rent arrears or child maintenance).

Click here [Link] for a complete list of debts that can and can’t be included.

Why Choose Us?

100,000+ people received free, confidential debt advice last year
£19 million in debt settled for over 4,000 clients in 2024
ervice is 100% free – every penny of your settlement goes straight to your creditors

Get advice now

Don’t just take our word for it

We’ve helped thousands of people become debt-free. Read real reviews from people like you who’ve trusted us to help them find a solution.

Check out reviews →

FAQs

To help you understand more about our debt settlement process, we’ve answered some commonly asked questions.

Do I have to pay a fee if I settle through PayPlan?

No – our debt settlement service is completely free. Some third-party providers charge a fee, so be sure to check before deciding how you want to proceed.

How will a debt settlement affect my credit rating?

It depends on the type of settlement you do. A full settlement will appear as “fully satisfied” on your credit file. Partial (or short) settlements will be marked as “partially satisfied” and remain on your credit file for six years. Your creditors will update your credit file after the settlement is completed.