Advice needed pls :-)

buffness

Hey Guys...

I was wandering if I can have a bit of advice from you.

I currently have 3 credit cards, one with Egg (£1600 owed), Virgin (£1800) and MBNA (£1800).

All 3 of them are 2 months behind, as I recently became unemployed and physically did not have the money to pay them. Ive had the credit cards for the past 5 years and I have made the minimum payments ALL on time - but the past 2 months has been hard.

I am now back in employment and get paid tommorow - Egg have said I can pay £20 for 3 months to get the account back on track, which sounds fab. MBNA and VIRGIN have said I can pay the oldest arrears (£62 on each credit card) to stop fees etc being added on, and they can look at what they can do.

The agent for MBNA/Virgin stated that they may be able to write off 80% of the debt and go for a partial settlement, which sounds great.... BUT.... it sounds too easy!! He said the TOTAL amount on both credit cards owed is £3600 and he can knock off £2900 therefore all I have to pay is £700....

There must be some kind of catch to this - he did say that it would have an affect on my credit file as it will show as a partial settlement.

I can do that, or just pay the arrears off and continue paying off the minimum payment, and then once I get back on track with debts, I can pay a bit more.

Has anyone ever heard of this? And, if its a good thing, do you think EGG will do the same?

It sounds TOOOOOO easy lol

Thanks in advance


XxX

normanmark

Your credit rating will take a battering if you go for the reduced settlement.

exel1966

buffness wrote: »

Hey Guys...

I was wandering if I can have a bit of advice from you.

I currently have 3 credit cards, one with Egg (£1600 owed), Virgin (£1800) and MBNA (£1800).

All 3 of them are 2 months behind, as I recently became unemployed and physically did not have the money to pay them. Ive had the credit cards for the past 5 years and I have made the minimum payments ALL on time - but the past 2 months has been hard.

I am now back in employment and get paid tommorow - Egg have said I can pay £20 for 3 months to get the account back on track, which sounds fab. MBNA and VIRGIN have said I can pay the oldest arrears (£62 on each credit card) to stop fees etc being added on, and they can look at what they can do.

The agent for MBNA/Virgin stated that they may be able to write off 80% of the debt and go for a partial settlement, which sounds great.... BUT.... it sounds too easy!! He said the TOTAL amount on both credit cards owed is £3600 and he can knock off £2900 therefore all I have to pay is £700....

There must be some kind of catch to this - he did say that it would have an affect on my credit file as it will show as a partial settlement.

I can do that, or just pay the arrears off and continue paying off the minimum payment, and then once I get back on track with debts, I can pay a bit more.

Has anyone ever heard of this? And, if its a good thing, do you think EGG will do the same?

It sounds TOOOOOO easy lol

Thanks in advance


XxX

The catch is that it will have serious reprocussions on your future credit worthiness, even as far as getting a mobile phone contract. ONLY take the partial settlement as a very last resort as your credit history/ratings are invaluable.

Now you're back in employment resume your normal payments or negotiate a payment plan/get them to stop interest being charged obviously without prejudice to any negative feedback to the CRA's etc but repay the full amount. Your two late payments so far with have a minimal effect on your ratings so long as you get things back in order sooner rather than later.

buffness

Thanks guys