Credit Card Settlement - What to do?

RandN

I have just downloaded a credit report, there are six credit cards on it - three of which where the debt has been sold on.

I don't really understand the difference between the current balance and the default/deliquent balance? Also because the debt has been sold on, is the current balance todays balance or from when the debt was sold.

My credit rating is already in tatters - credit score of 235 on Equifax. Lots of missed payments etc over the lsat couple of years due to my partner leaving and struggling with childcare etc.

So I'm wondering what to do next - should I be ringing up each credit card at a time offering some sort of settlement to get rid of them instead of paying out each month? Or do I need to claim back charges before I do that? Or can you claim back charges if the debt is sold on? My worry is that i offer settlement figures and the default balance stays on my report for 6 years whereas if I claim charges does that mean the default balance disappears or is just reduced?

Really not sure how credit reports even work so any help really appreciated.

Here is some of the info on the credit cards - I was hoping to tackle CapitalOne first - I have read that I should be offering 30-40% but how do I find where the figure is for this?

Thanks so much in advance

Barclaycard - Moorcroft 90 Current Balance 1300 Default/Delinquent Balance 2300
Egg - CollectDirect 92.50 Current Balance 839 Default Delinquent Balance 1857
Capitalone - Capquest 50 Current Balance 178 Default/Delinquent Balance 828
First Trust 1 30 AIB Current Balance 731 Default/Delinquent Balance 1261
First Trust 2 30 AIB Current Balance 731 Default/Delinquent Balance 1261
First Trust 3 30 AIB Current Balance 1499 Default/Delinquent Balance 2129

bottleofred

Hi RandN and welcome to the forum,

You've asked a lot of questions, some of which I'll be able to help with. People get very hung up on credit scores and they don't actually count for much as lenders have their own criteria. As you have defaults, then they do stay on your credit file for a total of 6 years from the date they have been applied, after which time they drop off your credit file whether settled or not. Defaults make it very difficult to get any kind of credit for the first 4 years, but settled defaults should look better to a lender than unsettled ones. When are the debts actually from and have you been making any payments? If the debt has been sold on to another debt collector, they may have added on some charges, but you'd need to contact them first to find out. Are the charges you refer to ppi? If so, I'm not at all sure about it.

Good luck

Red

RandN

Thanks for the reply!

The cards were all taken out in 2007 and 2008. The charges are for going over the limit, late fees and missed payments.

I have been paying £30 per month to all three First Trust cards, £92.50 to moorcroft, £90 to CollectDirect and £50 to CapQuest.

As you can see thats a first bit coming out each month - and some of the credit limits only started out at £500

I was thinking of trying to clear the CapQuest one first - it says the 'current balance' is £178 - can I offer then £178 or even £100? But I am confused about the Default/Deliquent figure of £878 - is this all the charges? And what about the £50 a month I have been paying off - has that been taken into consideration - or is £178 what is left of me paying £50 a month from the £878??

Sorry that's a whole lot more questions.

bottleofred

I can only presume there were interest and charges added at some stage to all of the debts. If the current balance for CapQuest is £178 and you believe this to be true, then I'd offer them £100 and see how you get on. As you've been paying regularly, I'd be surprised if they accept it, but it's worth a try. All settlement offers should be made in writing though and you should get a response in writing too, that includes the phrase "as a full and final settlement" or similar words. You should have been getting statements of the debt collectors, so ask for a balance statement now.