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Outstanding Credit Card Balance

Guys

A quick question and any help would be much appreciated.

I have recently received a letter from a Debt collector referring to an outstanding credit card bill. It’s for roughly £500. I’m still a student however it is possible I could pay the bill (I’d rather not as the original limit was £300).
I’m assuming the bill was sold to the credit agency for a reduced rate.

The crux of it is,
1 - can I offer the company a reduced rate of 50%, so £250 or is that too much of a reduction, I’m assuming the company will still make a profit from my ac and also to be honest I have greater and more urgent debts to be paid.
2 - will me not paying the full amount affect my credit rating anymore than its already been affected.

Thanks

G3rry

Comments

  • DarkConvict
    DarkConvict Posts: 6,347 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    I would first send the prove i letter to ensure it is your debt.

    If it is, ask for a breakdown of the debt.
    If the credit card did not allow the addition of charges a debt collector should only be collecting the £300 not asking for £500. Depends on the terms and coniditions of your credit card and what charges they tried to add.

    Debt collectors, if they own it. Buy them really cheap, so a 50% F&F would be a good place to go as you say you owed £300 - http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=24_full_and_final_settlement_offers
    Letter template - Section 5 http://www.nationaldebtline.co.uk/england_wales/debt_advice.php
    Although no trees were harmed during the creation of this post, a large number of electrons were greatly inconvenienced.

    There are two ways of constructing a software design: One way is to make it so simple that there are obviously no deficiencies, and the other way is to make it so complicated that there are no obvious deficiencies
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