paying off credit cards

mummy10

Hi we are thinking of selling our house and moving somewhere smaller
and using some of the money to pay off credit cards in full.
We have a couple of cards with balances of over £10K owing on both.
We have been paying reduced amounts on both for the last couple of years and they stopped the interest.
The question is would they accept a full and final payment that would be substantially lower than the amount owed?
Thanks in advance.

tom188

Very unlikely
Why should you pay less than you owe? You owe them money, you will now have the money therefore you should pay it back. They will only accept F+FS generally if the alternative is that you will default on the loan.

If you cant pay it all off your repayments will be substantially reduced any way so you should be able to clear the debts quickly if you are sensible.

tom188

It is peoples failure to repay what they owe that has caused the large increases in CC interest standard rates in recent months - the companies need to recoup their costs somehow.

CLAPTON

if the debt was defaulted a couple of years ago and especially if the debts have been passed to a DCA, then there is possiblity that a F&F would be acceptable.
it may well depend on the level of your current repayments in relation to the debt. the lower your current repayments in relationship to the debts the more likely they are to accept.
it is better that the offer is made on behalf of a 'relative' and the actual payment made out from him too. Make sure of course you get them to write out exactly what the deal is and its F&F. also ask that they agree to mark the debt a settled (but they may not do this).