Credit card debt

corry_2

Hi all i need some advice on how to clear my credit cards. I have 3 outstanding cards which are all on a repayment programme of a small amount a month with the interest frozen. I managed to do this myself with liasing with the creditors direct. My question to you all is, i'm now looking to clear these debts totally. I have a lump some of money to pay these off but not enough to pay all. I;ve heard you can offer an amount to wipe the debt what percentage is seen as reasonable of offer the companies to wipe my debt?
Many thanks corry:)

gonzo127

it all depends on who the debt is currently with, as well as the amount of the debt and the amount you are repaying at the moment

GENERALLY if the debt is still with the original lender you would be looking at anywhere from 60% upwards however it is usually more likely they will push for at least 75%

if it has been passed to a in-house debt collectors you could be looking at anywhere from 50-75%

if it has been purchased by an external debt collectors people have been known to get anywhere as low as 20% however average seems to be closer to 30% from reading these boards

just remember when you write your letter always offer lower than you can afford (to start of with) and give them a set date to reply by, 14 days is usually enough, and tell them if they do not respond within that time you will withdraw the offer and the money will be offered to another of your creditors

Tixy

Hi corry

As gonzo says it will depend on the state of your debts.Have you creditors formally defaulted you yet? How long have you been paying low payments.

If you are trying to settle for less than the debt amount read this - http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=24_full_and_final_settlement_offers