Debt Settlement is a process whereby you make a one off lump sum payment to your creditors, which is a lot less than you owe them, in return for the remainder of your debt being written off.

You may be able to do this if you have come into some money, have some savings you can use, a friend or relative has offered to put a lump sum forward or you have released equity from your property.

Once we have worked out together how much you can offer for a full and final settlement for each creditor, they can be contacted with your proposal. If your creditors accept the amount, and payment is made, the debt is then settled or satisfied.

Any debt still outstanding is not pursuable and will be marked as satisfied on your credit file, which will also show less than the full amount owed was accepted by your creditor.

It is often common for creditors or their agents to offer reduced settlement figures when you have demonstrated your commitment to repay your debts after a period of time. We can help you with this negotiation.

Unfortunately, there are no guarantees that your Full and Final Settlement offer will be accepted by any of your creditors. As a NDC client however, you will benefit from our experience of dealing and negotiating with creditors on your behalf.

What are the advantages and disadvantages of making a Full and Final Offer?

If the creditors accept your offer, you will pay less than you would otherwise have to if you were to repay the full amount of the debt.

The debt will be paid off more quickly and easily than if you were to repay the debt over a longer term.

Providing that your creditors agree to your offer, it offers you an immediate chance of a fresh start.

It should provide your creditors with a more attractive option than applying to make you bankrupt, due to the fact that in bankruptcy a large percentage of the lump sum would be swallowed up in legal fees.

Creditors should inform Credit Reference Agencies that the balance has been paid off in full.

Clearing debt may improve your credit rating.

Disadvantages:

You need access to a lump sum which could be used for other purposes, such as to pay other debts, or which could have been used to avoid the need for obtaining credit in the future.

Your creditors must agree to your proposed arrangement. Your offer will only be accepted when your creditors have agreed, and they are not legally bound to do so.
We cannot guarantee that creditors will accept lower settlements

If your creditors do not accept your offer in writing then there is a chance that they might chase payments at a later date.

Once your creditors know that you have access to a lump sum, they may not accept your offer and may take enforcement action against you to recover all of the debt.