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Reduced Total if Paying Early?

Hey,

If for example I owe 5K on a credit card and I'm struggling with minimum payments but find myself in a position where I may be able to pay off a sum of say 4k or 4.5k, all at once, does anyone know if CC companies will take a lesser offer to clear the debt? I've heard of this before but unsure if its fact.

Let me know!

Cheers

Jay

Comments

  • cifpower
    cifpower Posts: 6,502 Forumite
    You can ask the credit card company for a "Full and Final Settlement" figure but they may only offer this if you have been struggling to make your repayments in that you have multiple missed payments or defaulted.
  • Yeah I've been struggling after missing a couple. Forever playing catch up now!! Thanks for the advice!
    Jay
  • CLAPTON
    CLAPTON Posts: 41,865 Forumite
    10,000 Posts Combo Breaker
    do bear in mind that a full and final settlement will be usually be treated as a default and this will trash your credit rating for 6 years.

    I would suggest you go over to the debt free wannabe board and get advice there...
  • i would suggest that if you have 4k in readies then give it to them to pay your debt!

    You ought to be able to manage the repayments on just over 1k.
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