What is a Full & Final Offer?

A full and final settlement is an offer to partially repay your outstanding debts on the condition that your creditors agree to write off the remainder of the debt. It is a suitable solution to your debt problems if you have access to a lump sum of money such as from sale of property, savings, remortgaging or inheritance. Offers are usually based on a fair proportional basis which reflects the amount owed to each creditor.

What are the benefits of Full & Final Settlements?

The advantages of making a full and final settlement offer include –

• having your offer accepted means that you will pay less than you otherwise would have done


• your debts will be paid off much sooner, allowing you to make a fresh start


• your creditors should mark your debt as ‘satisfied’ meaning that any search on your credit file will show that you have successfully dealt with the debt


• creditors may prefer to receive a lump sum now rather than small payments spread over a longer period

What are the disadvantages of Full & Final Settlements?

The drawbacks of making a full and final offer include –

• there is no guarantee that your creditors will accept the offer


• if your creditors know that you have access to a lump sum they may demand full payment of your debt


• clearing the debt wont remove from your credit file any CCJs previously taken against you