Debt Settlement
If you have a lump sum available, you can ask a creditor about settling an account. DRC can help you discuss an offer and understand the written terms. A reduced settlement amount depends on the creditor accepting the proposal.
How the settlement process works
Our team approaches your creditor with a settlement proposal that exchanges immediate payment for a discount on the outstanding interest and charges. Because the account is settled ahead of the agreed term, creditors are often willing to accept a lower amount and close the contract early.
We help you confirm the amount, payment deadline and written settlement terms. After paying, keep the confirmation and check how the account is recorded.
Why clients choose debt settlement
- •Settle a high-interest account in one payment and avoid paying the remaining term’s interest charges.
- •Use an unexpected lump sum, bonus or asset sale to immediately reduce overall debt exposure.
- •Get expert negotiators to liaise with creditors and document the agreement so there are no surprises.
Is debt settlement right for you?
Settlement works best when you can afford the once-off amount without jeopardising everyday essentials. We’ll assess your situation, confirm the figures and advise whether settlement or another solution offers the best long-term benefit.
Before you accept a settlement offer
Have the current account statement and the amount you can afford available. The creditor decides whether to accept a proposed discount. Ask for written terms stating the account, settlement amount, payment deadline and whether the payment settles the account in full.
Confirm the recipient and payment details through a trusted contact. Keep proof of payment and request a final settlement letter. Ask how the account will be reported to credit bureaux. If you are already under debt review, discuss the settlement with your existing counsellor before changing payments.
Start your settlement conversation
Speak to our debt experts about a confidential settlement strategy. We’ll confirm the numbers and negotiate the best possible discount on your behalf.
Useful next steps
- If a lump-sum settlement is not affordable
Understand the formal debt review process.
- Compare costs before deciding
Know the fees and payment questions to ask about a formal debt review proposal.
- Check what you can afford
Include necessary expenses and other commitments before making an offer.
- Explore other support
Find budgeting, debt management and counselling information.