A Full and Final Settlement Offer is an offer of partial repayment to your creditors in the form of a one-off lump sum payment in return for having the remainder of your debt written off. A Full and Final Settlement Offer is a suitable strategy to clear your debts if you have access to a lump sum of money. This could be from:

• Savings
• Re-mortgaging your home
• An Equity Release Scheme
• Third-party donation from your friends or family
• Redundancy
• An inheritance or Lottery win
• The sale of assets such as property, investments, or works of a

It is important that any items you sell are not “essential items” such as a car if it is necessary for your work, or essential household items such as beds, cookers and fridges.

What are the Advantages of a Full and Final Settlement Offer?

• If your offer is accepted, it would mean that you would pay less than you would otherwise have to.
• Your debt will be paid off sooner, and you can make a fresh start
• Your creditors should then mark your debt as “Satisfied” so that future searches on your credit file will show that you have successfully dealt with your debt. Alternatively, in some cases, your creditors may choose to mark your debt with them as “Partially Satisfied”. You will be advised before completing payment to your creditors of what each creditor has agreed to mark your debt as.

What are the Disadvantages of a Full and Final Settlement Offer?

The disadvantages of making a Full and Final Settlement Offer includes:

• You may need access to a lump sum which could be used for other purposes
• Once your creditors know that you have access to a lump sum, they may demand full payment of your debt.
• It is not guaranteed that your creditors will accept your offer.

Clearing your debt will not remove any Default Notices or CCJs previously taken against you from your record. They will remain on your credit file for 6 years from their point of entry
To find out more, simply call us today on our free phone number 08002 800 492 or fill in the Contact Money Advice Group form on this page and we’ll call you back. Alternatively, please visit Belmont Financial Management Consultants’ Full & Final Settlements Page

Money Advice Group is the parent company of Belmont Financial Management Consultants (Belmont FMC). Belmont FMC is the service provider of Full and Final Settlements (FFS) and will be the company responsible for providing the FFS that includes, but is not limited to, receiving payments from you, distributing payments to creditors, giving advice & on-going support and working with you during your FFS. Belmont FMC is a wholly owned subsidiary of Money Advice Group. Details of Belmont FMC’s Full and Final Settlement fees can be found here