Agreeing Final Settlement figure with Creditors/Cards

A question about : Agreeing Final Settlement figure with Creditors/Cards

Im retired 74 years old. Small pensions.
I have many credit cards each with large balances outstanding.
Over 10 cards,
totalling over Ј90k debt.
Currently being controlled by a 'debt management plan' for a year now.
Nows the time I can obtain smaller funds (say Ј30k to equally divide up in proportion to each c/c balance of debt) to offer each card company 33percent of what i owe, as a final settlement agreement to wipe of the remainder balance of 66percent.
Currently the creditors(credit card companies) only get a division of 300pounds, which is very small, and this years review of my financies means they will be getting an even smaller division of apx100pounds between them via the debt mgnt plan, DMP.
I have tested, by ringing one company Lombard Direct who said its their policy to only allow a max reduction of 25percent.
??? does anyone have any experiences of what percent they have negotiated to be written off after any or none was paid back as a lump, and which card/debt collectors it was with???
here are the rest of the companies i need to negotiate with and will be calling them soon;
Metropolitian Collection Srvcs(MBNA)
Central Debt Collection Srvcs
Wescot Credit Services
Marks & Spencer Money
Royal Bank of Scotland Credit Cards
Link Financial LTD
Barclaycard
Link Financial Outsourcing Ltd
Capital One
Lombard Direct

the above debt collection agents are from these cards;
MBNA, Lloyds, HSBC, Barclaycard x5, M&S, RBS, Capital One, Lombard Direct.

Opus cedit card put the debt into the hands of the collectors who have just written off the whole 16k total balance saying its due to my age.

Please let me know on any advise or info you have on ''What is the greatest percentage i can get a balance reduced by upon making a final settlement offer'' and whats the best way going about the negotiations.

Thanks

Best answers:

• Settlements can be highly variable. Some people here have gone as low as 10% I think?
  Of the cards with collection companies, so you know which have actually had the debt sold to them instead of them just acting on the original creditors behalf.
  Companies that have actually bought the debt for a small % of the face value tend to be more able to in turn do simlar lower deal for you.
  I would note that Metropolitan &Central Debt Collection are "in house" rather than external collectors. i.e. they are actually the original card company using a "front".
  I presume that you do not have a house/property with equity or other assets? Or the likelihood of an increased income in some form as you pension is now all you will ever get?
• thx for your response.
  i do own a house with no mortgage. but i'm aiming to use little or none of the equity as that may be needed to fund a nursing home for me/or wife or both in the future as we are both retired over 70 years old now. Also dont want to give up any inheritance that should be going to my children (not swallowed up by extortionate card fees/interest/charges from multimillion pound card companies and banks)
• I think you need to make the offer in writing, using the national debtline model
  Factsheet | Full & Final Settlement offers
  Start a bit lower than you intend to agree. Say 25%. The weak point that you have is that there is an asset they could put a charge on if they wanted to go down that route. The strong point (which you should make in your letter) is that you are offering 25% now or Јx per month over the next 25 years, and you are now 74!
  I have known settlements at 10% but they have been either mortgage shortfall debts or dubiously enforceable. I think the going rate for debt sale is a bit higher than that (but not much!).
• i offered to pay to LINK FINANCIAL 33% of the outstanding total balances i have with them, about Ј37k. After their manager came back a day later they DECLINED my offer saying itS too low and they are looking at 75% with their customers to pay back. So I declined back to them.
  ??? can anyone advise if they know of or have a good idea of what are the possible percentages of reductions I should be able to get from my creditors listed ????
  Marks&Spencer Money have agreed with me that I can settle by paying them just 30% back, out of Ј2500. Now theres a little xmas sparkle from M&S!!
• Hi there,
  Just to add to the excellent advice from Fermi and Fatbelly. Please, please make sure you get the agreements in writing. If you want free impartial advice on the wording on the letter, you can ring National Debtline and read the letter out to them - I did this when doing settlements.
  Also, you might find this thread interesting: https://forums.moneysavingexpert.com/...d.php?t=115430
  Good luck
  SAAC