Renegotiating Credit Card Debit

powerwin

Hi All

I'm looking for some advice on behalf of someone else, who has significant debts. I have noticed that four of their credit cards are administered by the same institution, the Bank of Scotland. This person is currently meeting the minimum repayments required and should continue to do so.

However, I'd like to know whether it's possible to negotiate with Bank of Scotland to change 4 credit card debts into a single lower interest loan? Does anyone have any experience of attempting such a thing? Can you write to an institution and ask them to amalgamate your loan commitments.

Thanks

PowerWin

euronorris

Hi there,

I think it can be possible, but im not an expert on that so I can't say for sure.

However, I do know that it is not recommended to consolidate debt into a loan. Whilst it can seem like a good idea at the time, you are often paying it back for far longer, therefore paying more. And, unless you are very careful and strict, you will simply run up more debts on the CC's and then you end up twice as bad as you first started.

It would be better for your friend to complete a Statement of Affairs (SOA) and look at ways to reduce their monthly spends. If it was posted on here, we would all offer our support and guidance.

http://www.makesenseofcards.com/soacalc.html

Also, they should check out the snowball calculator, so they know which CC to target first (ie, the highest interest).

http://www.whatsthecost.com/snowball.aspx

powerwin

Thanks for your reply.

Do banks have specific departments that you can talk to about credit card debts?

Would taking out a personal loan with Bank of Scotland be an option? I guess the interest rates on this would be lower than on the credit cards.

My question is whether the banks will give you better deals if you ask, or will they only do this if you take more formal action like an IVA.

Thanks