You can make settlement offers to all of your debts, sharing out the lump sum fairly among them.
Not all creditors will be willing to accept reduced settlement offers. They’re more likely to agree this if it would otherwise take you a long time to repay them.
Firstly you need to work out how much to offer your creditors and then send your offer to them in writing.
Always ask your creditors to confirm they accept your offer in writing before you send them any money.
Keep any letters your creditors send to you about the settlement offer just in case you need to refer to them again in the future. We recommend keeping these letters safe for at least six years after you’ve paid the settlement amount.
You may find not all your creditors are willing to accept your offer of settlement and you’ll have to negotiate with each one individually. It’s possible that none of your creditors will accept a full and final settlement.
If your offers are accepted, make sure you send payment to each creditor by the date they give you. Keep proof of payment.
Use our template letter to offer a full and final settlement to your creditors