A full and final settlement plan is a debt solution much different to other debt solutions available. It does not require any ongoing monthly payments, it doesn’t adversely affect your credit score necessarily and it doesn’t require taking out a debt consolidation loan.

However, this is only suitable for you if you are fortunate enough to come into some money. What a full and final settlement essentially is, is a legally binding agreement by your creditors to accept a lower amount than the total amount you owe them, in exchange for you paying it all off in one lump sum payment.

This means that your debts are paid off instantly, essentially and you can then forget about the associated stress and worry. However, not everyone is lucky enough to come into enough money to make a reasonable offer of one payment to their creditors.

If you are though, what will be involved is some formal contact with your creditors. Some people choose to do this alone while others prefer to go through a debt management company who might already have dealt with the creditors before and have built up a relationship with them. The debt management company will negotiate on your behalf to achieve the lowest possible settlement amount. You will then be able to make a payment to the debt management company and they will distribute it as agreed to your creditors.

Of course, you are welcome to contact your creditors alone to make the offer. Just be sure to send them details of the money you are set to receive and inform them of other debt commitments you have as well. You should then make an offer based on this.

If your creditors accept any full and final settlement proposal from you, there will be a legally binding agreement written up and once the agreed payment is made, your debts are considered settled in full.