Advantages and disadvantages of a full and final settlement offer

Facing big debts? They could look even bigger before you know it.

It’s great. Walking into town to watch the footie with your mates on a sunny Saturday afternoon. You’ve no work worries, you’ve got that new MOT and the kids are staying over at a pals. So who gets the first round of drinks in? Me of course. And I ain’t going to say no to a lovely bit of grub either. Bring it on.


Who are you kidding? Debt doesn’t just go away.

And that cash you’re splashing about isn’t yours – it’s the creditors you’ve been in debt to for the last few weeks. One of them can’t even afford a drink, let alone a new MOT.

Get your debt sorted or go bankrupt

You can’t hide away from debt, brush it under the carpet or think about it tomorrow. Whether it’s to one company, four, five people or a payday loan that’s spiraled out of control – clear your debts ASAP, or the situation could get out of your control.

At Find a Debt Expert, we’re experts in finding a suitable repayment plan that is precisely tailored to your situation. It could be in monthly instalments, a one-off lump sum or it could be a Final Settlement Offer (FSO).

FSO Advantages

  • Finally, you’re taking control of the situation, so it relieves stress.
  • Allows you to make a fresh start.
  • If the creditor(s) accept your offer, you will pay less than you would have initially. It can also save a lot of time.
  • FSO’s can work quickly meaning the debt is paid off faster and easier.
  • As it’s not an insolvency solution, you are not entered into an insolvency register.
  • Gives you an incentive to work towards. And you’ll feel happier with every step.
  • If a lump sum is offered, creditors can use that to file for bankruptcy. And they don’t want that as legal fees, which affect them, will then come into the equation.

FSO Disadvantages

  • If considering a lump sum solution, it is essential to get the agreement in writing from your creditors.
  • Friends and family may be able to help. You can always pay them back over time.
  • Your creditor(s) may not accept, especially if they happen to make a loss.
  • Other than windfalls or inheritance, very few people come across lump sums.
  • If a creditor hears about your lump sum solution they may take court action.
  • Debt still shows up on your credit file which could making getting future credit harder – your file will however be marked ‘partial settlement’ which doesn’t sound so bad.

Get it sorted with find a Debt Expert

Get in touch with Find a Debt Expert today. Don’t leave it until tomorrow. Debt doesn’t go away, it just gets worse, especially if family are involved. contact Find a Debt Expert today on 0161 694 2650 or use our Debt Calculator.

Find a Debt Expert is a trading style of Milton & Stirling Ltd, Company Number SC587851 – Solutions Scotland, 78a Stanley Street, Glasgow, G41 1JH. DPA number ZA431921

Milton & Stirling Ltd are an Appointed Representative of MichaelAlan Ltd who are authorised & regulated by the Financial Conduct Authority, FRN 690939.

As part of our free service, we’ll review your financial situation, explain the available options and recommend a debt solution which is suitable for you. The risks of all suitable solutions will be explained clearly and if you decide to go ahead with a debt solution we will refer you to one of our trusted providers who specialise in the management of that debt solution. We’ll be paid for introducing you or for the preparatory work we do, depending on your debt solution fees may be payable if ongoing services are provided. Read about fees and key information in our terms & conditions. To find out more about managing your money and getting free debt advice, visit Money Advice Service , an independent service set up to help people manage their money.

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