Settlement arrangement

lawrie7062

Hi folks,

I have £2500 on my egg credit card at 29.9%. I am currently on an arrangement where they have frozen my interest for 6 months but I have just remembered that I have 2 KrugerRands that my father left me which would raise around £1600. I didn't want to sell them as I wanted something to pass on to my kids from him as they never met him.

I'm sure that by now and June/July, I could pay/save £400-£500 so giving me £2100 approx.

Does anyone know if you can offer an amount for early settlement or does it need to be passed to a debt collector first?

If anyone has any advice or experience of this, I'd love to hear your opinions

Thanks in advance.

bengalknights

It would have to go to a debt collector as creditcard companys arent known for settlement only mortgage companies and loan companies usually offer it.

You can give it a try though seeing as they frozen your interest.

lawrie7062

bengalknights wrote: »

It would have to go to a debt collector as creditcard companys arent known for settlement only mortgage companies and loan companies usually offer it.

You can give it a try though seeing as they frozen your interest.

I've found a couple of websites that give advice on this. Since I got retired, I just can't afford my payments. The other problem with being retired is that I can't release equity in my property as I would need to be re-assessed for afordability but with an employment status of "retired", they won't even look at me.

I'm not trying to escape my debts but no-one is willing to help.

I begged and pleaded not to be retired as I knew the implications but HSBC were not interested.

izools

lawrie7062 wrote: »

I've found a couple of websites that give advice on this. Since I got retired, I just can't afford my payments. The other problem with being retired is that I can't release equity in my property as I would need to be re-assessed for afordability but with an employment status of "retired", they won't even look at me.

I'm not trying to escape my debts but no-one is willing to help.

I begged and pleaded not to be retired as I knew the implications but HSBC were not interested.

Downsize perhaps?

As hideous a prospect as this sounds, in two years time my mother will be faced with the choice of selling her home and buying somewhere much cheaper, or allowing Birmingham Midshires to reposess - her term is up in 2013, she has £50K capital outstanding, and is ineligible for a remortgage due to retirement income as you are.

The only option I can see, which I have proposed is to sell the house to me for £50K, charge her rent at the same cost of the mortgage to me, and create some legal document with a solicitor stating she has total and exclusive right of access to the property, and total and exclusive right to the equity therein should she wish to release it, so long as the rent is maintained.

Depending on what the solicitor recommends in a couple of years we may even agree she can register a charge against the property with the land registry for the amount of equity therein.

Perhaps you have a family member able to do something similar for you to help with your debts?