MBNA Debt Settlement

Bruffles82

Hiya

Hope someone may be able to give me some advice. In 2005/2006 i was in a fair bit of debt with credit cards and a loan with MBNA. I went to a debt management company defualted on payments and they arranged to have the interest frozen and pay a reduced rate. After being with them for a while i decided to leave the DMC as they were charging me £35 a month. I spoke to each of the companies and upped my payments with each of my debts.

I have now paid off all the cards and have got the loan left with MBNA currently £6500 left to pay. The interest is still frozen. When i left the debt management company in 2008 and started paying £116 per month, in December 2010 i upped the payments to £150 per month, the interest is still frozen.

I want to know if anyone has settled the debt with MBNA after these sort of circumstances and how much to offer? family have said they would lend me £1500 if it would clear it? What do you think?

Also would MBNA ask many questions on your current finaical situation as im a lot better off that i have been, got a better job etc. Or is it worth me just saving us as much as i can each month and paying it all back when i have all the money together?

Thanks

Apples2

We had a question like this yesterday.

They are bound to request an updated income and expenditure form from you.
If you are going to make them an offer, you are esssentially telling them you have access to a considerable sum of money.

£150 is entirely reasonable compared to the payments some people make. This might work against you when they are considering a F&F Settlement as they are getting their money back at a sensible rate.

No-one can be sure, they may request an increase of your monthly payment (sounds like you could afford to do this), or they may accept your offer (or at least negotiate).

Tixy

Hi

Might be better asked on the Debt free wannabe section where you may find people with experience of partial settling with MBNA.

Is the debt still owned by MBNA? not been sold on?
What markers have they put on your credit files? a default or an arrangement to pay?

If its still owned by MBNA and bearing in mind you are paying at quite a high repayment rate then I think 23% is likely to be too low an offer to be accepted. Its the sort of level you might get on a debt that has been sold on to a 3rd party debt collector.
That said it might be worth trying. If you are making such an offer in I would make it clear that the offer is based on a loan from a relative who will only loan you the money on the condition it repays the debt in full and final settlement. Only ever do F&Fs in writing not by phone.

An offer, if declined, might trigger them to ask for an updated income & expenditure statement to see the current state of your finances.