Full And Final Settlement Offers. Free Advice. StepChange

You can use a lump sum of money to pay back the people you owe. This is either a ‘full balance’ or 'partial’ settlement depending on how much you can pay back.

You might be able to use a lump sum from:

Selling an asset, like property or a vehicle
Getting an inheritance
A gift from family or friends

Get debt advice to find out if a settlement is right for you.

What is a partial settlement?

A partial settlement is when you have some money, but not all you owe.

This means:

You offer a lump sum to pay off the debt
The sum is less than the full balance you owe
In return the creditor “writes off’ the rest of the debt

What is a full balance settlement?

A full balance settlement is when you have enough money to clear your outstanding balance.

This means:

You pay a lump sum
The sum is big enough to repay your debts in full
The debts are marked on your credit file as ‘satisfied’

Did you know that we have a dedicated team who can help you settle your debts?

Our team will:

Look at your situation
Write a proposal
Make the requests to your creditors
Arrange for any payments to be made
Discuss options with you if offers are not accepted

Our settlements service is free of charge.

Talk to us now

Worried about money?

We can help. Free, online debt advice available now.

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How do you make a settlement offer?

A settlement offer shares out the lump sum fairly among all of your debts.

Not all lenders accept partial settlement offers.

They are more likely to if:

You cannot afford to pay them back in a reasonable amount of time or
You may never be able to pay them back in full

These are the steps to follow:

1. Work out what you can offer the people you owe

2. Send your offer to them in writing

3. Ask them to confirm they accept your offer in writing

Do not send money until you get a confirmation

4. Keep any letters your creditors send you about the settlement offer

You may need them again
We recommend keeping them for at least six years after you pay the settlement amount

5. Negotiate with your creditors if you need to

Some may not accept your settlement offer
You may have to talk to them individually
It may be that none of them accept it

6. Make sure you send on time payments to the people you owe

Keep proof of payment

Use our template letter to offer a partial settlement to your creditors.

What percentage should I offer in a full and final settlement?

It depends on what you can afford.

Your full and final settlement should offer equal amounts to each creditor.

For example:

Your lump sum is 75% of your total debt
You should offer each creditor 75% of what you owe them

Can I remove settled debts from my credit report?

Debts included in a partial settlement are marked as ‘partially settled’ on your credit file.

This means the debt was cleared for less than the full amount
It could make it harder to get more credit

It is removed from your credit file six years after:

It is partially settled, or
The date it defaults (if earlier)

Debts included in a full settlement are marked as either “satisfied” or “settled” depending on if the account defaults.

Get some expert help and advice

Get free, online debt advice to find the right help for you.

We will:

Give you a budget
Look at your options
Help you set up a solution

Worried about your finances?

Putting together a settlement offer