Debt Settlement | FAQs
- What are the advantages of debt settlement?
- What are the disadvantages of debt settlement?
- What happens if my creditors refuse the offer?
- Will being in an IVA or Debt Management matter?
- Will debt settlement affect my credit rating?
- How much does it cost?
- How long does it take?
- Can’t find your question? Contact us.
What are the advantages of debt settlement?
- If the offer is accepted you will pay less then you would otherwise have to.
- Your debt(s) will be paid off faster and you’ll be able to make a fresh start.
- Your creditors will mark the debt as “Satisfied” on your credit report.
- Clearing your debts may improve your credit rating.
What are the disadvantages of debt settlement?
- The lump sum of money could have been used for other purposes.
- Your creditors may demand the full payment once they know you have access to a lump sum.
- Your creditors may not accept the offer.
- Any default notices, CCJs previously taken against you won’t be removed from your credit report just because the debt is cleared.
What happens if my creditors refuse the offer?
Jackson Partners have years of experience in dealing and negotiating with creditors on our clients’ behalf but we cannot guarantee that the offers we send out will be accepted. However, if this is the case, we will advise you on the next best solution for your situation.
Will being in an IVA or Debt Management matter?
Neither being in an IVA or a Debt Management Plan will matter, although a different approach to making the offers will be needed if you are in an IVA. We will still be able to assist whether you are in an IVA or Debt Management Plan.
Will debt settlement affect my credit rating?
Most creditors won’t put a black mark on your credit file if you’re settling the debt, whether that be a partial or full payment. As part of our negotiation process we ask your creditors to mark your debt as “satisfied” on your credit file. Even if you have entered into an IVA, Debt Management or even if you have missed payments we’ll do our best to ensure your credit file stays intact.
How much does it cost?
Unlike other companies we do NOT charge an upfront fee for our debt settlement service. We work on a no win, no fee basis meaning that if we don’t save you any money, it won’t cost you a penny. If we are successful we charge 25% of the amount we save you, for example if you owe £10,000 and we manage to negotiate a settlement of £2,000 our fees would be £2,000, which would save you £6,000 in total.
How long does it take?
Once we’ve received all of the relevant documentation from you we will begin the debt settlement process. The duration of the process is different for each situation because it depends on how your creditors respond to the settlement figures we offer, it can take anything from a few days to six weeks. We aim to have your debt settled as quickly as possible.