Consolidation offer on credit cards?

mrsblub

Hi, I have 12k of credit card debt on two cards and while I have bounced minimum payments I am always up to date by the end of the month. I had 15k of debt at the beginning of the year and have been paying as much as poss each month. My cc debt is unfortunately at 22% and I have been refused new credit cards and both existing cards have refused to budge on my current APR.

I have just applied for and been accepted on a loan for 12k at 14%, still not great but better than current circumstances. My question is, is it worth me making an offer to the 2 credit card companies for final settlement and if so, how do I go about it given that I have just been accepted on a loan?

~Beanie~

Credit card companies won't usually entertain a full and final settlement unless your account has already been passed to debt collectors or is in severe arrears.

Saying that if you don't ask, you'll never know!

minimike2

Im not sure where the offer of full and final comes into play....doesnt really make sense. There is £12k o/s on the ccards and looking at a loan of £12k, so its simply consolidation.

If you go for this you need to clear the cards, cut them up and request the accounts be closed, else you will spend on them again.

If you can do that then in this case it would seem a good idea. Lower rate, structured repayment plan, and no bounced DD fees for your late payments. Just make sure the money is in to pay the loan each month.

dhassen

If you pay off the cards with the loan don't ever ever ever ever touch the cards again. Cancel them and then cut them up / destroy them.

mrsblub

All good advice, thanks everyone!