Full Settlement
What is a Full and Final Settlement?
A Full and Final Settlement means that you ask your creditors to let you pay a lump sum which is less than the full balance you owe to them. In return for this lump sum payment, the creditor agrees to write off the rest of the debt in full. Hence, it is called a 'Full and Final Settlement'.
You may in a position to do this because you have unexpectedly come in to some money or have some savings you can use for this purpose.
So How Do I Obtain a Full and Final Settlement?
If you have a lump sum of money and would like to make a full and final settlement to your creditors, you may be able to agree a reduced amount from your creditors to settle the outstanding debts in full.
After you have worked out how much you can afford to offer for a full and final settlement for each creditor, then you can contact them with your offer. If the creditor accepts the amount and you make the payment with agreed timescales then this debt will then be settled in full.
The Financial Helpline can give you free advice by calling 0800 389 6339.
