MBNA Partial Settlement

TimTheBear

Hi guys..

After many sleepless nights, panic attacks and writing letters to my creditors, I have had MBNA write back to me with regards to a F+F I wrote to them a few weeks ago.

The debt is 3100 and I offered them to pay them 1K (i managed to borrow this), they rejected the offer of F+F and said they 'may' consider a 'partial payment' providing i fill in an SOA (they enclosed one)

I've been reading that this is bad news as the debt may be and more than likely to be sold on.

What shall I do?? How to respond? I really need help from you guys...

I've lost 1 stone in worry already..

thestealer

Step 1: Relax, you can't go to jail for debt.
Step 2: Get a real handle on your incomings/outgoings/debts/assets.
Step 3: Once we get an idea of the full picture, your options will be clearer (hopefully your mind will be too)
Step 4: Tackle any problems with full knowledge of your situation.

I would recommend filling out a statement of affairs here...

http://www.makesenseofcards.com/soacalc.html


There's ALWAYS a solution...keep that in mind.

TimTheBear

Hi

I have an SOA filled out, but I'm trying the F+F route first as it will be LESS money to owe back as I can borrow some cash. Its horrific (see my old posts) and I feel so useless for running up this debt. Alot of people are saying go with CCCS, I have a web number etc, but doing what my partner wants to do is to 'see' if we can lower the debt first, then last resort is CCCS via a DMP.

How do i handle this 'partial' payment scenario? anyone been through this before?

I love you guys

thestealer

Ok, first off, if you're useless then I'm the proverbial chocolate fireguard

What are the terms of this "partial payment" if it's not a full and final? To be honest, I'm very sceptical.

Oh, and having the debt sold on is no biggie really. Have you actually missed payments?

David_Brent

Don't stress about about it, Have you Defaulted/ have you checked you credit rating etc? Having the debt sold on actually helped me come to a partial settlement with Llyods TSB so as said its not bad news as such.

TimTheBear

Hi

Alot of emotions run through me, I cry every night hating myself that I cannot give my OH what she wants (marriage, baby and bigger house) I'm 36 and shes 34.. her 'biological' clock is ticking and I really hate myself for not being sensible with money when I was in my 20's.

Please dont flame my OH saying shes not understanding.. She too has debt (but not alot as me) and she is also not paying creditors as we're both living beyond our means.

We've all sent letters offering F+F and how much we can raise etc and MBNA are the first to reply, but they want to have a look @ SOA and also give a 'partial' settlement. I dont care if my credit goes up the swanny now, I've spent 15 years trying to uphold it and now I'm 36.. I'm tired of paying the minimum repayments.

How do I reply to MBNA? reading alot on the forums that partial settlement could be and would be sold on to a DCA.

Its our first month of not paying the mins on the cc's.. So we're slowly getting phonecalls.. Although we sent letters at the beginning of the month stating we're going to and probably getting made redundant in a couple of months time.

I'm scared..

David_Brent

Hi don't be scared about it, at least you are trying to deal with the problem thats the main thing.

Maybe if you posted your SOA in this thread people could suggest some cause for action?

thestealer

Agree with Ricky Gervais there, if you can post the details of your debts/income/expenditure and maybe a little history of the debts the picture will be much clearer.

Trust me, once everything is down in black and white it's much easier to be rational.

SusieT

Ditto the others in saying to post your SOA.

MBNA may well accept your offer but they will not mark your credit file as settled they will mark it as partially settled but will not chase you for the remainder or sell it on to anyone else. If you do accept them marking the file as partially settled make VERY sure that they send you a letter stating that the remainder will be written off, and that Neither MBNA, its associated companies or other debt agancies will ever require it to be paid - and keep the letter somewhere safe in case they do try to chase it 6 years down the line!

fermi

Don't get hung up on the word 'partial', or the term "full & final".

Many creditors (including MBNA) offer a 'partial' settlement, by which they often mean how your credit file will be marked, rather than that you will be chased for the rest or it will be sold on.

If you settle with a creditor for less than the full amount, then it is perfectly fair for them to record a "partial settlement" on your credit file.

What you need in writing is that:

- The debt is settled
- Your liability for any remaining is ended.
- Your credit file will be marked in some way to show that no further payment is expected, and that the account is settled or partially settled.

MBNA can be a bit awkward about how the word this in offer letters, so I would suggest that you give National Debtline (freephone: 0808 808 4000) a call to go through the wording of any offer with a professional debt advisor.

WRINKLES

IF a debt is still with the original creditor they are unlikely to accept a full and final if it had been sent to a dca to collect they would , and if the dca had bought the debt they would accept a small percentage as they buy debts for pennies in the pound , have you defaulted , how old is this debt