Reduced Lump sum repayments.

pyrorus

Ive just cleared my MBNA card off using £1000 of my mothers loan to pay a lump sum. Therefore reducing a £5000 debt to £1062. (2 monthly payments of £31 and on off as £1000) which they have said they will now write off the rest of my debt to them. WOOHOO.

I was wondering tho. Im still in debt by £33000 (2 loans and 3 Credit cards. All interest stopped except one which is reduced) may be able to get access to the rest of My mothers Cahoot Loan £5000 (less the £1000 i used) Is there a way i can contact the outstanding creditors and explain and see if they would be willing to look at a Reduced Lump Sum payment.

I know this seems like a Cop out. But I dont want them to find out I may be able to get this and then say you can pay that off to reduce the amount and carry on paying the debts as i cannot afford to pay both the loan and the other creditors. (I replaced the MBNA with the amount Im paying to the loan).

On the other hand if i can get them to accept them I can easily afford the pay the full £5000 off and be out of debt a lot quicker.

My main questions are

1. Is it just wishful thinking to be able to reduce to this amount.
2. If not how would I go ablut arranging it.
3. Is there any risk of the situation above happening?

Thanks for help in advance

Rus

Macduff_3

Your creditors are not going to settle £33k for £5k, unfortunately. They will usually accept between 50 and 70% depending on the creditor and the size of the debt.
Also, are you paying your mum back for the loan? I understand why you got rid of MBNA as their interest tends to be high and they are a pain to deal with, but borrowing another £4k off her will just make your situation worse, surely?
Have you got payment arrangements in place with your other creditors?