Full and Final CC Settlements...Help Please!

bugaboo123

Hi, I have around £30k's worth of debts on 5 credit cards (Egg £7968, Egg £6354, MBNA £6200, Barclays Visa £4167 & Barclays Mast. £5576) My minimum payments which I have been paying for 24 months now total £980.00 pcm (so almost £20k paid back but the balances have not changed)! It is crazy...I am now NOT in a position where I can afford to pay these payments each month as I am no longer working and I am a full time mummy :j As you can imagine, it is SOOOO depressing and really getting me down having this dark cloud above me. A family member has offered to help me with a gift of £17k to rid of this debt and I have recently heard of F&F settlements...In reality do the CC companies really go for these F&F settlement offers? Has anyone ever made an offer to Egg/Barclays or MBNA and had it accepted? Please please can anyone offer me some advice as I feel suffocated by this vicious debt...Thanks so much :A

edinburgher

Bugaboo, based on your change on circumstances I'm sure that some of the companies involved will be willing to negotiate (especially as you have quite a reasonable sum with which to offer settlements).

I've seen a fair few threads mentioning some of these companies in relation to full and final settlements - I'd take a look at the search function and see what you can turn up.

No doubt someone more knowledgeable will come along in a moment. Good luck!

bugaboo123

Edinburgher, thanks so very much for replying to my post, I really appreciate it. Excuse my ignorance, I am new to this, but how do I look in the SEARCH function? Where is that located please? And thanks once again, it is lovely to know that someone took their time to try and help. Thankyou

Deep_In_Debt

Unless you've been struggling to pay the monthly repayments or missing payments, I honestly think you will find it hard to get F&F's. Usually debts that are sold on to debt collection agencies are good for F&F's as they buy the debts for peanuts but the original creditors usually accept the full amount.

Sorry to be the bearer of doom.

bugaboo123

Deepindebt, thanks so much for your post. What you have said has crossed my mind too... I have made a handful of late payments over the last 12 months, but No missed payments to date. My objective was to attempt to settle this ugly mess before it gets to "Debt Collection Agency stage"...Or does it not work like that then? Thanks again for your advice, it is hugely appreciated

Deep_In_Debt

Contact CCCS, Payplan, National Debtline or CAB - all free advice in your interests.

I really do think you will find it hard to do a f&f unless you have proven that you have been struggling for a while, as creditors tend to want rid of "bad debts" quickly.

Speak with the above - you could consider doing a dmp for a while and make F&f's along the way? A dmp will show that you are struggling and many creditors sell debts on to DCA's which puts you in an even better position with making an offer.

edinburgher

Speak with the above - you could consider doing a dmp for a while and make F&f's along the way? A dmp will show that you are struggling and many creditors sell debts on to DCA's which puts you in an even better position with making an offer.

That's a fair point, but the fact that the OP has been managing to pay £900+ a month until now may play against her? I think writing down a full SOA (see the stickied forum link) would help you figure out exactly what you owe and what you have to throw at the debts (if anything)

immoral_angeluk

Completely agree with deeperindebt. No creditor will accept a f&f until you are in arrears at the very least.
Some options -
use the money to pay off the highest interest debts, bringing your debt down to 13k and more manageable.
use the money to part about 1/2 off all your debts and make the individual balances smaller
Go to somewhere like CAB, CCCS etc for advice BEFORE you get the money, otherwise this will be included in a financial statement as savings and creditors will be much less likely to accept any reduced payments.
Don't take the money, and just arrange a DMP or look into some other form of solution.

One thing I will say though, is how sure are you this is a gift, and how likely could it be that you take this 'gift' and then them ask for it back if they get into hardship, or if there is a falling out.... legally a gift is a gift but A) it's difficult to prove so you could face a lengthy court case if it does kick off and they want it back but you refuse and money is one of the biggest reasons I've come across for arguments between families and friends.. especially where 'gifts' or loans are concerned. Would you be happy in the knowledge you had reduced your debt, even if it came to it that you ended up falling out with the person involved?

immoral_angeluk

edinburgher wrote: »

That's a fair point, but the fact that the OP has been managing to pay £900+ a month until now may play against her? I think writing down a full SOA (see the stickied forum link) would help you figure out exactly what you owe and what you have to throw at the debts (if anything)

Not neccesarily. In negotiating with creditors they'd look at the current financial situation not the past. They don't know how she'd been paying or whether she could really afford it. She could've been using credit to pay credit or selling her body on the street for all they know.. They'd want an up to date financial statement and would use that.

edinburgher

Not neccesarily

I bow to your superior knowledge I'm going to stop trying to help now - it seems to be causing nothing but confusion!