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credit card settlement advice needed
travellingwilberry
Posts: 2 Newbie
in Credit cards
Hi everyone,
I have 4 credit cards,all of which i owe approx 1,000. I am just managing to pay off the interest and a little bit more. I am no longer in full time employment and work part time. I am right in thinking that i can write to them offering a settlement amount and hope that they except otherwise i will never be able to pay it off. How much should i offer them on 1,000
thanks
I have 4 credit cards,all of which i owe approx 1,000. I am just managing to pay off the interest and a little bit more. I am no longer in full time employment and work part time. I am right in thinking that i can write to them offering a settlement amount and hope that they except otherwise i will never be able to pay it off. How much should i offer them on 1,000
thanks
0
Comments
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Short answer... NO.
You can write to them all enclosing an income and expenditure sheet with a proposal for a reduced payment plan whilst you are suffering financial hardship, and request they freeze interest until you get your feed back on the ground.
If you have capital to clear some of the balance, close one or two accounts, and use the money that you would have been using to pay those, to the two or three that remain, clearing the debt more quickly.
You can't just pay back less than you owe because you don't feel like paying the interest you previously agreed to unless there is a damn good reason!!
How much capital do you have to offer in total?Cashback Earned ¦ Nectar Points £68 ¦ Natoinwide Select £62 ¦ Aqua Reward £100 ¦ Amex Platinum £48
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travellingwilberry wrote: »Hi everyone,
I have 4 credit cards,all of which i owe approx 1,000. I am just managing to pay off the interest and a little bit more. I am no longer in full time employment and work part time. I am right in thinking that i can write to them offering a settlement amount and hope that they except otherwise i will never be able to pay it off. How much should i offer them on 1,000
thanks
What you're really needing is debt advice, not credit card advice I'm afraid - lots of good information on one of the other boards http://forums.moneysavingexpert.com/forumdisplay.html?f=76
Detailed article on debt with more options http://www.moneysavingexpert.com/loans/debt-help-plan
And external free debt advice who can help you negotiate with your creditors http://www.cccs.co.uk/"A child of five could understand this. Fetch me a child of five." - Groucho Marx0 -
thanks for all your advice. I have obviously been mis-informed about offering a settlement. Will write to them and ask to freeze my interest:p0
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It's difficult to give advice without knowing your full financial circumstances.
In the scale of things 1,000 of debt is a relatively modest amount of debt and you may well find your credit rating is trashed for 6 years.EU tariff on agricultual product 12.2%
some dairy products 42.1% cloths 11.4%
EU Clinical Trials Directive stops medical advances0 -
It's difficult to give advice without knowing your full financial circumstances.
In the scale of things 1,000 of debt is a relatively modest amount of debt and you may well find your credit rating is trashed for 6 years.
Think OP meant 4 x £1000 of debt. At 21% APR, that makes a monthly interest rate of 1.6012%, or £64 per month in interest.
If they're struggling to pay that "and a bit more" then they're out of their depth and need to go down the DFW route and live on beans and toast for a few months IMO.
EDIT: If they did mean total debt was £1000 and they're struggling to pay £16 per month in interest "and a bit more" then they're having a laugh."A child of five could understand this. Fetch me a child of five." - Groucho Marx0 -
once you write to them they will send you a form to fill in with your outgoings and incomings ...... but i have just done this with my scottish bank and they have started to get heavy by cutting off my facility to pay online ???????? dosent it make you wonder if your on the right planet.PPCs say its carpark management, BPA say its raising standards..... we all know its just about raking in the revenue. :eek:0
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If you have capital (assume you must if you were going to ask for settlement), use this. The bank are unlikely to entertain your request to freeze interest without you going several months delinquent first= ruined credit file. Seems a high price if you have some cash floating about. Making an arrangement to pay a reduced amount (e.g. £20 a month) will also mess things up for 6 years. Is it worth it for the sake of circa £65/month (again assuming you have this available)0
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