Unsure what to do w/CC debt

clarksworth

Hi there...

Sorry if this is a lot of repeat questions - I've had a look around here and it's all a bit overwhelming!

Short story - I fell into the common trap of using my Halifax credit card while at uni as a student. Things started going a bit wrong and having been treated appallingly by the Halifax even when I did stand in good stead with them, I let it slide and vowed to deal with it when I graduated.

Unfortunately over the last 12 months they've started taking money out of my account - frequently taking entire paycheques (and then charging me for the resulting bounces). I spoke to them about 10 months ago and asked if they would negotiate a final fee, but they told me to stuff it, essentially.

Out of the blue last week I got a letter from IQOR who I assume are not an in-house debt collector. They want £250 a month to cancel off a debt of £2100 - which as a student I can still not afford. The letter states that they would be willing to offer me a "substantial reduction" in my debt. If I were to get a low enough final fee, I would be willing to sell off a few things and be shot of this once and for all.

My questions are:

- How do I find out what's the lowest I can get the balance reduced to? Is there a set negotiating method or do I just ask what they'll do?
- Does anyone have any idea of a ballpark figure they might reduce it to?
- Are there any template letters recommended to fill in?
- How do I stall them for approx a month while I get the money together?
- Now that it has been passed to these people, does that mean the Halifax will stop taking money out of my account? It's the only debt that I hold with them.

Apologies again if these are common questions, but any help would be hugely appreciated.

Tixy

Hi

If you have debts you cannot afford with your bank then its usually advised to switch your current account to a new banks to protect you from offsetting.

With regards to a full & final settlement you just need to negotiate with them - read this for a factsheet and letter template - http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=24_full_and_final_settlement_offers
If you have a default for this debt (which I assume you do) and its now with an external DCA then you could maybe start around 25-30%


To stall them, if Iquor have only just contacted you you could send the prove it letter first - http://forums.moneysavingexpert.com/showpost.html?p=11570893&postcount=2

Will Halifax stop taking money? maybe but I wouldn't bank on it.

clarksworth

Ah, that's just the link I was looking for - thanks very much. I'll go with an offer over 30% just to get it done and dusted.

Many thanks.