Paying off credit cards. Advice needed please.

BREHENY53

Hello, we are new to this and would really love some advice.
We owe about 7,000 over three credit cards and and have been told by a friend that if we could pay these in full we may get it a bit cheaper. I wondered if any of you had any experience of this and how we go about it.

any help , will be greatly appreciated.
Gill & Mark:beer:

tom188

Sorry im not sure what your question is? What have you been told will be cheaper if you pay off the cards? Certainly paying off your cards would be a very good idea but i dont think thats what your meaning to ask...

thumshie

I think you're refering to 'Final Settlement' where you ask the credit card company if they'll accept £x amount to settle the account. I'm not 100% sure on this but i think you normally need to have exhausted all other routes, and have shown that you have problems making the minimum payments. I.e. you've missed alot of payments, and have agreed a repayment plan.. I'm sure one of the others here can provide more info..

King_Of_Fools

If you pay of your credit cards in full you will save yourself a lot of interest payments. On £7000 you would probably be looking at a £1400 saving over a year!

peawack

Are you saying that you have the £7K to pay off your cards ? If you have, it would sensible to clear your CC debt, if you can. If you cannot pay it all, pay the one with the highest amount owed,( or the highest interest ) and maybe they will offer you a good (lower) rate to balance transfer one or both of the others. I have found from experience that if you leave a smallish negative balance you are more likely to get a new , better rate offered to you as the card company realise that you will still be paying the higher rate while you are finishing paying what you still owe them. If this happens then pay the full amount before you do a new B/T.

Phoenix79_2

BREHENY53 wrote:

Hello, we are new to this and would really love some advice.
We owe about 7,000 over three credit cards and and have been told by a friend that if we could pay these in full we may get it a bit cheaper. I wondered if any of you had any experience of this and how we go about it.

any help , will be greatly appreciated.
Gill & Mark:beer:

Full and Final settlements are very rarely offered and when they do its only as a last resort after every other avenue has been exhausted. They won't just offer it to anyone ringing up. If you have the money to clear them completely then do that. That way you won't ruin your credit score for the next 6 years and be unable to get credit for anything else in that time.

Sorry to be blunt but are you having money problems? Is that why you don't/can't pay them off? If so, pop along to the 'debt free wannabe' board for moneysaving tips