Writing Off Debts

You may be able to have your debt written off completely. Creditors are generally reluctant to do so, although most will if they realise they have no hope of having the debt repaid. A debt can be written off for the following reasons:

• If you have been making a regular attempt at paying off the debt with a small amount every month, you may then offer your creditor a lump sum, as "full and final payment". They may very well accept this offer, realising that £200 now is better than receiving the full sum of the debt at £5 a month for 100 months, and so effectively they will write the rest of the debt off.
• If you become unemployed and are unlikely to find work again because of age, illness, disability or unusually high rates of unemployment.
• If you are part of a joint agreement, and the main earner dies. A lender may decide not to pursue the surviving borrower as he or she may simply be unable to afford the repayments alone.
• If you are unable to work for a number of years for a genuine reason, such as becoming a single parent.