Settlement offers

If you have recently received a lump sum of money, you could use this to offer your creditors a one off payment to clear your debt.

This is known as a ‘full and final settlement’. The offer may be less than the outstanding balance but, if accepted by the creditor, can be classed as full payment.

A lump sum of money may result from selling an asset such as a property or vehicle, receiving an inheritance, or a gift from family or friends.

When considering a settlement you must always get written acceptance of your full and final offer before you send any money to your creditors. You may find that not all creditors are willing to accept any offer of settlement and you will have to negotiate with each one individually. You may find that none of your creditors will be able to accept a full and final settlement.

In such cases you will need to explore other options. You can use our online debt counselling service, CCCS Debt Remedy, which will provide you with the most appropriate solution to your debt problem. Alternatively contact our free Helpline on 0800 138 1111.

Settlement offers FAQs

Can you provide me with a letter to make settlement offers to send to my creditors?

England and Wales > Debt solutions > Settlement offers

If settlement offers is highlighted as a possible solution for you after speaking to a counsellor or using our online counselling service, CCCS Debt Remedy, we will provide you with a template for the letters to send to your creditors.

Are my creditors likely to accept the offer of settlement?

England and Wales > Debt solutions > Settlement offers

We are unable to say whether your creditors are going to accept your offer or not. Different creditors have different policies for negotiating settlements.

Will making settlement offers affect my credit rating?

England and Wales > Debt solutions > Settlement offers

If the creditor agrees to mark your credit file as ‘settled in full’ it should have no negative impact on your credit file. If the creditor agrees only to accept the offer on the basis that it’s marked as a ‘partial settlement’, it will notify future lenders that the debt was settled for less than the balance. If future lenders are aware that you’ve settled debts for less than the full amount, they may be less likely to be willing to offer you credit.