This guide helps with
- Understand what settling for a reduced amount means
- Recognise when a settlement might be worth proposing
- Know how to raise a settlement with Merion
- Understand the value of independent advice first
- Find free help to consider whether it suits you
5 min read
You're not alone
If you could put together a lump sum but cannot manage the full balance, it may be possible to settle your account for a reduced one-off payment. People in genuine hardship ask about this more often than you might think, and there is nothing wrong with raising it respectfully.
A settlement is not guaranteed, and whether it suits you depends on your circumstances — but asking the question costs nothing, and it can sometimes be a clean way to close things off.
What you can do
If you would like to explore a settlement, a little preparation helps the conversation.
- Work out what lump sum you could realistically raise, and where from.
- Be honest with yourself about whether it would leave you short on essentials.
- Have your account or reference number ready.
- Consider getting independent advice before you commit to anything.
Step by step
- Find your account number on your notice.
- Decide on the lump sum you could genuinely offer.
- Contact us through the contact form or reply to your letter, and ask whether a reduced settlement is possible.
- Put your proposed figure forward and ask for any agreement in writing.
- Keep a copy of everything before you make a payment.
Free support available
Because a settlement is a significant decision, it is wise to talk to someone independent first. A free financial counsellor can help you weigh whether settling is the best use of your money, and can negotiate with us on your behalf. Call the National Debt Helpline on 1800 007 007 — free, confidential and independent. This page is general information only, not financial advice.
Good to know
- A reduced settlement may be possible in genuine hardship — it is worth asking.
- Be honest about whether a lump sum would leave you short on essentials.
- Get any settlement agreement in writing before you pay.
- Free, independent advice on whether to settle is on 1800 007 007.
FAQ
Will you definitely accept a reduced amount?
There is no guarantee — it depends on your circumstances. But asking is free, and a financial counsellor on 1800 007 007 can help you put forward a sensible proposal.
Should I empty my savings to settle?
Not without thinking it through. This is general information, not advice — speak with a free financial counsellor first so you do not leave yourself short on essentials.
Will a settlement clear the whole account?
If a reduced settlement is agreed, get it in writing confirming it clears the account in full, so there are no surprises later.
Still stuck? Our team is happy to help you sort it out.