It is an offer to pay a creditor a sum of money, usually in one payment, to clear a debt for less than you owe. The creditor decides whether to accept. They can say no, ask for more, or carry on collecting the debt.​
Acme Credit Consultants Ltd is authorised and regulated by the Financial Conduct Authority (666760). Helping you settle these debts is regulated work.
Debt settlement work relating to debts owed by a limited company may fall outside FCA regulation. The position depends on the nature of the debt and the service being provided.
If you are a sole trader, a company director with personal liabilities, or have personally guaranteed a company debt, the position may be different. We will clarify which service applies to your circumstances before proceeding.
We will explain the relevant service, fees, terms and available complaints arrangements before you decide whether to proceed.
We look at your income, spending and debts, and whether you have a lump sum available or could raise one. We also look at whether this is the right option for you.
With your agreement, we write to your creditor with an offer. The creditor decides. They may accept, ask for more, say no, or ask for proof of your situation. We’ll tell you what they say.
Don’t pay anything until the creditor confirms in writing the amount that will settle the debt in full.
Pay the agreed amount by the agreed date, and keep the creditor’s letter and proof of payment.
A full and final settlement may be an option if you are struggling to repay your debts in full but have access to a lump sum that you can offer to your creditors.
It may be worth considering if:
Whether this option is appropriate depends on your financial circumstances, the type of debt you owe and your creditors’ willingness to negotiate.
A full and final settlement may not be the right option if you do not have a lump sum available, owe money to several creditors and cannot afford to settle each debt, or need a formal debt solution to address your overall financial situation.
Using essential savings or taking out further borrowing to fund a settlement could leave you struggling to cover household bills and other important commitments.
Depending on your circumstances, alternative debt solutions may be more appropriate.
A debt management plan allows you to make regular payments towards eligible non-priority debts, with payments distributed between your creditors. It may be worth considering if you cannot afford to repay your debts under your existing arrangements. Interest and charges may continue unless your creditors agree to freeze them.
Breathing Space is a government scheme in England and Wales that can provide temporary protection from most creditor enforcement action, interest and charges on qualifying debts. A standard period lasts up to 60 days, during which you must continue to meet certain ongoing payment obligations where applicable. It is not a debt write-off scheme.
A Debt Relief Order may be suitable for someone who meets the relevant eligibility conditions, including limits relating to debts, assets and disposable income. It can provide relief from qualifying debts, subject to the scheme’s rules and restrictions.
An Individual Voluntary Arrangement is a formal agreement with creditors to repay an agreed amount over a set period. It is arranged and supervised by a licensed insolvency practitioner and is subject to eligibility and affordability considerations.
Bankruptcy is a formal insolvency process that may be considered when someone cannot repay their debts. It can have serious consequences for assets, finances and future borrowing, so it is important to understand the implications before proceeding.
The most suitable option depends on your circumstances. A debt adviser can help you understand the available options before you make a decision.
Priority debts are debts where failing to pay can have particularly serious consequences, such as losing your home, facing enforcement action or having essential services affected.
They can include:
If you have priority debts, it is important to assess these alongside your other financial commitments before offering a lump sum to a creditor. A full and final settlement for a credit card or personal loan will not automatically resolve rent arrears, mortgage arrears, tax liabilities or other outstanding priority debts.
Contact the relevant organisation or seek appropriate debt advice as soon as possible if you are struggling to keep up with priority payments. The right approach will depend on the type of debt and your circumstances.
1Â Free consultation: Contact us for a no-obligation chat about your finances.
2Â Check if it suits you: We look at your numbers, explain how a settlement works and whether another option may suit you better, and tell you our fees.
3Â We write to your creditor: If you go ahead, we make your offer. They don’t have to accept, and we’ll tell you what they say.
4Â Get it in writing: Only pay once the creditor has confirmed the settlement in writing.
A Full and Final Settlement is an agreement where you pay a lump sum to a creditor that is less than the total amount owed. In return, the creditor agrees to write off the remaining balance and close the account.
Settlement amounts vary depending on the creditor, the age of the debt, and your circumstances. In many cases, significant reductions are possible. Our advisors negotiate on your behalf to achieve the best possible outcome.
Yes. Full and Final Settlement requires a lump sum payment. This could come from savings, a family contribution, or a windfall. If you do not have a lump sum available, other solutions such as a DMP or IVA may be more appropriate.
Yes. Creditors usually mark a settled debt as ‘partially settled’ on your credit file, which is different from ‘satisfied in full’. Our advisors will explain what to expect before you agree to any settlement.
Yes. This is a core part of our service. We contact creditors directly, present your circumstances, and negotiate the lowest possible settlement figure on your behalf.
Yes, once a creditor accepts a written settlement offer and payment is made, the agreement is legally binding and the remaining debt cannot be chased further.
The timeline depends on how quickly creditors respond and whether you already have funds available. Settlements can sometimes be agreed within a matter of weeks.