Pay off credit card totally, and cut up, for a discount

Graham_Devon

Just pay your debt. You used their money to do whatever you did with it, no you owe them it back.

How would you like it if someone owed you 13k, they had the 13k to pay, but said 'well I'll give you 12k' hen you had lent them 13k in the first place?

M_Thomson

NickNik wrote:

Thanks for those who provided advice. For those who say 'you owe it - pay it all', please do remember that credit card companies (and banks) buy money so they can sell it to us at a higher rate. The margin between buying and selling is what keeps them fat. Asking for a discount for complete settlement is like walking into a shop and asking for a discount for cash, paid now. I am sure you would not find that offensive. Strange though we seem to have an inordinate number of supporters of credit card companies here! (??)

With respect, are you for real???!!! Are you really that dozy that you want to ruin your credit rating?

nrsql

I sort of agree.
You have this amount on 0% which is losing the bank money. Depending on how long there is to go on the 0% it might sound as though it would be beneficial to the bank for you to pay it off and offer you a discount (small - look at the figures).
But by the same argument they should never have offered the 0% in the first place - so why did they. Probably in the hope that you won't be able to pay it off, will make a mistake or buy other services.
With that in mind what has changed? Possibly the banks attitude to risk? But how much would it cost them to process an agreement compared to how much they would save. The time of workers needed to process this request would probably be more costly than just writing off the full debt.

You can try but you almost certainly won't get an amicable agrements based on both parties interest. I would hope that sort of request would get thrown straight in the bin before it cost the bank too much and causes them to need to penalty charge a few extra clients.

jonnyb

Nicknik, why would MBNA offer you any settlemet figure at all ? They don't require the 13K back in a lump sum payment.

It is in their interests for you to keep the debt, and start paying interest on it. They want you to take months and years paying it back

They will no accept a reduced amount; they will mark your file with a default if it gets that far; they may sell the debt to a collections company and you will have bailiffs knocking at your door. That might wipe the smug smile off your face.

You will struggle to get any low cost credit for up to 6 years.

If you have studied any of the info on this site you would know how to make money out of the situation by stoozing, and keep your 13K well invested.

It am so annoyed by your attitude, but board rules prevent abusive comments. Get real.

NickNik

I am amazed at the tosh in some of the 'replies' here. First some people seem to not want to answer the question I asked but to tell me how to behave. I am afraid I will ignore those. What I owe includes the charges which many people find excessive.

I have a choice of paying the money over to MBNA or running the 0% balanace transfer route, or investing what I have to get a rate higher than their current rate. This is a commercial decision, not an emotive one.
I am astounded about the 'bad history' comments.

The whole point is I want to offer a settlement which is in full and final settlement, so if they accept it then there is no bad history. What I am talking about is a normal commercial arrangement that suits both sides.

What was initially a trivial question is now more serious because I am intrigued by those who pronouce with such authority on 'pay what you owe'. Maybe you are not aware about the self indulgence of senior staff in credit card companies, but I am. That is why I asked the question in the first place.
If you have an answer to my original question, I would be delighted to have your thoughts.
Thanks to all.

NickNik

How would you like it if someone owed you 13k, they had the 13k to pay, but said 'well I'll give you 12k' hen you had lent them 13k in the first place?[/QUOTE]

Thanks for reply. In fact what you descibe happens hundreds of times per day in the Uk between companies. They settle as long as the payment is above their cost price, and everyone goes home happy.

NickNik

M_Thomson wrote:

With respect, are you for real???!!! Are you really that dozy that you want to ruin your credit rating?

If that is the consequence fair enough. But you will see what I am looking to do is not a namby pamby settllement where they hold all the cards. This is a negotiation to give both parties what they want. If you are saying go for it but that is the result, I am happy to ignore the consequences that you feel are a threat to me.

NickNik

blacksta wrote:

I would advise that you pay off and forget the arrangement idea. If it is your debt then it become your responsibility to pay it off. Save your self the hassle.

Only if the hassle is not outweighed by the financial benefit to me. But hey, that is how banks/credit card companies work, and have teams of lawyers and debt collectors to chase us incessently.

Was it the MD of Barclaycard who said to a Commons Enquiry that he wouldn't use a Barclaycard as the rates are 'excessive'?

M_Thomson

NickNik wrote:

I am amazed at the tosh in some of the 'replies' here. First some people seem to not want to answer the question I asked but to tell me how to behave. I am afraid I will ignore those. What I owe includes the charges which many people find excessive.

People are amazed that you don't seem to realise that what you are doing is making sure that you damage your credit history for no reason whatsover.

NickNik wrote:

I have a choice of paying the money over to MBNA or running the 0% balanace transfer route, or investing what I have to get a rate higher than their current rate. This is a commercial decision, not an emotive one.
I am astounded about the 'bad history' comments.

Is this a leap year? You will get a bad history if you go into an arrangement with them to pay this debt. Anyway you won't get that chance as you admitted you can pay it back. When you ask to go into an arrangement, banks will often ask to see evidence of income and outgoings.

NickNik wrote:

The whole point is I want to offer a settlement which is in full and final settlement, so if they accept it then there is no bad history. What I am talking about is a normal commercial arrangement that suits both sides.

There is no such thing as a "normal commercial agreement".

NickNik wrote:

What was initially a trivial question is now more serious because I am intrigued by those who pronouce with such authority on 'pay what you owe'.

??!?

NickNik wrote:

Maybe you are not aware about the self indulgence of senior staff in credit card companies, but I am .

Do you have a grudge against credit card firms?

NickNik wrote:

That is why I asked the question in the first place.
If you have an answer to my original question, I would be delighted to have your thoughts.

It seems to me like you are posting to be controversial on purpose. I cannot believe that you cannot see that what you are doing is the wrong course of action. There are people who cannot pay and are in difficulty. Yet you admit you can pay back the debt.

M_Thomson

NickNik wrote:

If that is the consequence fair enough. But you will see what I am looking to do is not a namby pamby settllement where they hold all the cards. This is a negotiation to give both parties what they want. If you are saying go for it but that is the result, I am happy to ignore the consequences that you feel are a threat to me.

You won't get anywhere with your negotiation. The credit card companies are not stupid. Do you think they would not ask for evidence that you cannot pay this debt?