Dealing with your non-priority debts

See our fact sheet:

Full and final settlement offers.

Can I offer a lump sum to clear my debts?

If you have a lump sum that is less than the full balance you owe on your debts, you can ask your creditors to accept the payment and write off the rest of the debts. This may be an option if you have come into some money or have some savings you can use. Creditors do not have to accept an offer in 'full and final settlement' but if your circumstances are unlikely to improve, they may agree to your offer. If a creditor agrees to your offer, make sure they confirm this in writing.

'Consolidating your debts' into a new loan

You need to think very carefully before deciding to add all your debts together and pay them off with a new loan.

This may not be the best option for you, especially if your lender wants to secure the loan on your home. This means you could have your home repossessed if you do not keep up with the payments. Before agreeing to a consolidation loan, contact us for advice. ‚Äč