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You are missing the point. The debt writedown has already been agreed. I am offering to accelerate the timing of payment. The price for the accelerated payment for the bank should be a further writedown, because of the time value of money. I'm looking for some ideas on how to price the time...

the payments are part of a settlement plan. the settlement plan attracts no interest. Say i owe the bank 50 by way of 5 future payments of 10 euro. All the bank will ever receive is 50. However it costs 10 euro to administer the file over that period and they can lend the funds they receive...

that isn't the issue, it's whether it is worth more to them to receive a lesser amount now. Wondering what kind of calculation people have justified in this circumstance..........discount at the banks weighted cost of capital ?

1. Settlement amount with interest rate of zero. 2. The time value of money and costs of administration of the file.

Hi How much should a settlement offer on unsecured debt be ? I have a payment plan with the bank and want to settle it but would like some guidance on what kinds of deals other have previously managed to do in these circumstances. Many thanks