Full and final settlement of credit card?

lclclclc

Hi, unfortunately a good friend of mine has recently been made redundant, he has received a nominal payout from his company,approx 8k. He is worried about his credit card, which has a balance of about 4k on it - payments never missed, but... he is very concerned the job market in his specialist field is not going to pick up, for a long while, say at least 6 months. I am asking on his behalf, if he should call the company, and say, he will make a full and final settlement for say 3k, whilst he has the money.. to potentially avoid the situation in a couple of months time,when he may not have the money to make payments on his credit card at all? ie, its better for the company to have some of the money, rather than none at all?

YorkshireBoy

I think your friend will find they're a long way away from being able to make a F&F offer. I believe there has to be a long history of missed payments and perhaps a default situation before lenders will consider a F&F settlement.

withnell

Your friend could make smaller payments (just as long as they're over the minimum) until a new job is found. That way while it costs interest, there's no black marks on credit report.

pinchez

I think the sensible thing to do is just pay minimum payments until he finds employment as he may need that money to tide him over.

Robert_Sterling_3

No chance of them accepting £3,000 instead of £4,000 in this situated in my opinion.

anotherpaul_2

YorkshireBoy wrote: »

I think your friend will find they're a long way away from being able to make a F&F offer. I believe there has to be a long history of missed payments and perhaps a default situation before lenders will consider a F&F settlement.

Yes, there's no way they'd accept less that the full amount until they have substantial evidence that he'll never pay it. Otherwise, they'll be happy to wait while it accures interest and have it paid off whenever.