Negotiating a Lump Sum Settlement

bobbyzzz_2

Hi I got approx £15,000 worth of debt with Credit Card Companies, with the average debt, with each company, being approx £1,500 - £2,000. A relative has offered to clear my debts and I'm planning to negotiate final lump-sum settlements.

If the average debt is £1,500 - £2,000, how much shall I offer, 30%, 50% off the total balances for each account?

And, also, as I been paying off the minimum balances what reason should I give for making the lump sum payments?

Thanks

chattychappy

They won't consider any discount - you owe the money and as far as they're concerned they expect to get it. If you have been paying the minimums, then they are very happy to keep charging you interest if you can't pay the whole lot off right now.

CC companies generally only consider discounts when the account is behind. In this situation they become worried they might never see the money and have perhaps made a provision for a bad debt in their accounting or have sold the debt on. In these situations there is scope for a deal.