credit card early repayment

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hi do you get a reduced balance if you pay of your credit card balance in full.example you have 2000 pound balance and pay interest each month if you clear the balance would it be less than £2000.only asking because i know someone who got a call from there company and they offered them £500 discount if they cleared the balance there and then.

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  • normanmark
    normanmark Posts: 4,156 Forumite
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    No you don't get a discount. The only benefit you get is borrowing money & not being charged interest by paying every statement in full & on time.
  • NickX
    NickX Posts: 3,046 Forumite
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    I think you are referring to something called a "Full and Final" settlement whereby the Creditor agrees to accept less than the total amount outstanding as settlement of the debt. In the most extreme cases it has been known for people to pay as little as 30% of the total debt.

    However, for them to agree to this you need to demonstrate that they are unlikely to be able to recover the full amount and by accepting a "Full and Final" settlement they going to get about as much as is going to be possible. This means that generally the account needs to be defaulted and show multiple missed payments and possibly already have agreed reduced payments for some time. Naturally this would not do your Credit Rating any good in the longer term.
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