Advice for clearing cards...

dt1564

I got the following debts on the following cards...

Virgin card - £4650
Barclay card - £2810
First Direct card - £3000

Total £10,460

I've had the cards for over 4 years and have simply been paying the minimum off each month.

I've recently come into a bit of money and want to clear the cards.

I was chatting to someone recently who said that before I phone up and clear them I should try to negotiate on the final payment. Basically say to them how much would you take now to clear the cards.

Has anyone heard of this happening?

Does anyone have any advice for clearing the cards?

onlypaddy

This only ever really happens when a debt has defaulted and been passed on to a debt recovery agency. If the debt is still on the cards, they will not take anything less than full settlement. BEst advice is to pay off the card with the highest interest first

smidgey

Do you have the money to clear all of the debt?

Are you able to meet the minimum payments?

If so then you should pay the debts back in full. You have borrowed the money, pay it back.

dt1564

Yes I have the money to clear all the debts, through a recent inheritance.

It's a case of looking to negotiate on the ridiculous interest the cards have accrued not the paying back the money I've spent plus a fair rate of interest.

I have been meeting the minimum payments but doing this represents 65% of my monthly income, so for the last 4 years I've never had any way of making a dent in the overall balance.

smidgey

Which I understand but you borrowed the money and you knew the interest rate on the cards if you didn't pay them back.

Now you can pay them back so pay them off before you pay any further interest.

I feel like I am being shafted with Barclaycard at £80 a month interest but I knew the interest rate when I was spending on the cards so why shouldn't I pay it?

bobbydrake50

Even if they would agree to a settlement figure it would ruin your credit rating for several years so you would find it difficult to get more credit (mortgages etc). So have a think about it before you go down that road.

Fiddlestick

dt1564 wrote: »

It's a case of looking to negotiate on the ridiculous interest the cards have accrued not the paying back the money I've spent plus a fair rate of interest.

I have been meeting the minimum payments but doing this represents 65% of my monthly income, so for the last 4 years I've never had any way of making a dent in the overall balance.

You were happy to take the money, knowing full well what the APR was at the time...

Meenu

Whatever you decide, what a great position to be in.
Good luck

MFWannabe

Pay them back and the cut them up. Then sit back and consider yourself very lucky that you could do this.

dt1564

Fiddlestick wrote: »

You were happy to take the money, knowing full well what the APR was at the time...

I was hoping for some advice, not a dressing down. Before I could no longer work full time I could afford them, and some of the debt was to do with survival costs not needless shopping.

dt1564

bobbydrake50 wrote: »

Even if they would agree to a settlement figure it would ruin your credit rating for several years so you would find it difficult to get more credit (mortgages etc). So have a think about it before you go down that road.

Thanks for this advice, I didn't think it would effect it as I would be paying most of it back. Food for thought.