debt help pls

freddy12

Hi, I have entered into an agreement with my credit card companies to pay a set amount each month, which I believe I can pay.

3 of the debts are around £10k each.

A family member has offered to help me out and pay a large amount of money, but it wont be the full amounts.

Would the CC companies accept a lower lump sum offer at this point (only 2 months into pay agreement) as a full and final settlement, or will they pursue for the full amount?

Thanks

Mum-2-Be

I think the majority will give you a lower settlement amount if you pay it in full, give them a phone tomorrow, you can only ask

lvm

Depends on how long it will take you to pay back full amount at current rate. I assume there wasn't a period of time you stopped paying?

How much are you being given in comparison to the £30k? To be honest the credit card companies are actually very unlikely to give much of a reduction if you're still paying a decent amount. It's usually only when the debt has been sold on to DCA that you can get some big discounts (and the more the debt is sold on, the better).

If you have been issued defaults by the companies and were desperate for a reduced settlement, not paying and waiting til they'd sold debts on (could take years though) would be your best chance.

That said, making an offer won't do any harm!

lvm

Also, although there's no harm in phoning, don't just pay over the phone if they agree. Get it in writing confirm they agree it's a full and final settlement and your remaining debt will ot be pursued by them or sold on for anyone else to pursue.

freddy12

Hi, just a bit of an update.

I have 3 credit cards, RBS £11k, Barc £15k, and Egg £12k
I have agreed low payments to Barc £160 a month, and Egg £206 a month, currently paid upto 2nd month.
RBS wouldnt agree a payment until I submitted the a SOA, which I have just returned in and offered £100 per month

TBH I cannot keep up these payments for long, as my income is dropping all the time, whilst living costs go up.
RBS have threatened me with a default, not sure if its active or not yet, not heard from them for a month. They did say the card was cancelled, which the other 2 havent.

now a family member has offered to lend me £15k,
Do you think they would accept a full and final offer?
As I said I will not be able to keep up these payments for much longer, I only agreed to them because they pushed me into a corner and said I would have to make these amounts to avoid further action.

If they are likely to accept F&F, how do I distribute it?

Thanks for any help

F

freddy12

anybody offer any advise?

thx

NeverAgain_2

Have you considered bankruptcy?

Thirty thousand is going to take a lot of paying off, however you do it.

Particularly when you are struggling to meet minimum payments.

This might be morally suspect, but in a way it seems a waste to use the generosity of your family member to pay off the debts.

Go bankrupt, and use the £15k to get back on your feet after discharge.

secretshopper75

Before BR I'd consider a DMP with a free company, give them a call and get some advice or use the online tools on their website.

freddy12

Thanks for the replies,

the £15k isnt a loan from family, its a 'gift' ie, I wont have to pay it back. (sorry should've made that clearer)
Really dont want to go down the BR route.

I was hoping that the 15k would help us avoid this?

So to refer back to my original question,
do you think they would accept a lower settlement?
how do I distribute the money?

Thanks