This question is subject to a number of variables such as the client’s situation, the age of the debt, who the credit provider is and the conduct of the account. We have arranged discounts of 80% plus in the past, however reductions of between 30% to 50% are more common.
Frequently Asked Questions
This really depends on your situation, however most matters will be resolved within two to four weeks.
This is one of the few situations where loan arrears can be considered a positive in negotiations. With an unsecured creditor, a delinquent account is a big problem as other than harassing the borrower or commencing recovery action, their options to recover the debt is limited. Our greatest successes are often with older debts that are in arrears.
In most cases a credit provider can only list a payment default with a credit reporting agency after the account is a minimum of sixty days in arrears. Provided we become involved prior to this, we can usually halt this action and help preserve our clients credit file until the matter has been resolved & settled.
Our first priority for a client is to give them relief by making sure all calls and letters are redirected to us. We achieve this by supplying the creditor with what is known as an “Authority to Act”. Once they have loaded this authority onto their systems, which can take up to a five working days, they are legally obliged to direct all future combination to us.
Many of our clients feel a deep sense of relief after we become involved as they are able to pick up the phone or open a letter again knowing it is not from a credit provider demanding money or threatening legal action against them.
Whilst each matter is different, as a rule of thumb you will need to either have access to funds sufficient to payout the agreed settlement figure or a loan approval for an amount adequate to retire your creditors at the reduced amounts.
The fact that we are able to talk with your creditors about the complete discharge of the debt provides us with significant negotiating power and in most cases allows us reduce your debts significantly.
While creditors may be willing to offer a payment plan they are unlikely to discount the amount owing significantly unless a lump sum can be offered to settle the account.
Definitely not. In some cases, this can actually help as the creditor will be spending money on legal fees and often they will be highly motivated to resolve and settle the matter. Some of our best outcomes have been achieved for people where their accounts have been heavily in arrears and legal / recovery action has already commenced.
Loan facilities such as mortgages and vehicle loans can be difficult to reduce as the credit provider has direct recourse to recover their debt via the sale of the asset. It is only in the case where the value of the security held is not sufficient to retire the debt that a creditor will consider a reduction. Due to this, the majority ofcases we help people with are for unsecured debts such as credit cards and personal loans etc.
It is rare for us to not successfully negotiate a debt reduction, however as our fees are only payable upon reducing your debts, there is absolutely no risk to you. No reduction no fees!
No, we are happy to work on one or all of your debts, it’s entirely up to you and your circumstances.