Full and final settlement offer

Key facts

How much debt must I owe? There is no minimum or maximum level of debt.

What type of debt? Use this option for credit debts usually.

How long will it last? A short time, unless payment is in instalments.

How it works

If you have a lump sum available that will pay off part of your debts, you can ask your creditors to accept a part payment and write the rest off.

You may get creditors to agree to you making monthly payments for a set period and then writing the rest off.


  • You clear your debts in full but only pay part of the debt back.
  • It relieves stress and anxiety.
  • It allows you to make a fresh start.
  • This gives you a goal and means you are more likely to make the payments.


  • You lose your lump sum or asset which you could have used elsewhere.
  • It is vital to get agreement in writing from your creditors before paying the lump sum to them.
  • You may need to ask for help from relatives or friends.
  • The debts will still show up on your credit file and affect your ability to get credit in the future, but your file will be marked to show you have made a ‘partial settlement’.
  • A creditor could refuse your offer and try to recover the whole debt by taking court action.