Paying Off Credits Cards - Bartering Them Down!

davetaylor

Hi There,

Ok, I have recently managed to get a loan for £14900 at just 6%. The purpose of this is to pay off all of my credit card debt. In the good old days I used to swap to interest free cards and never pay interest. Over the past few years I stopped being accepted for new cards and the deals all ran out and I was left paying high interest rates.

It feels awesome to finally be able to pay them off.

I wanted to know though. Since I am now in a position to pay off the full outstanding balance, am I am able to make the credit card companies a reduced offer? I mean, would they reduce the amount I have to pay?

In particular, I have two credit cards with Barclaycard. I don't know the correct term for what has happened but Barclaycard have effectively stopped it being credit card debt and simply made it a debt that is currently getting paid off at the minimum payment. One of these cards for example has a balance of around £5000. Do you think they might be willing to reduce that if I offer to settle in full? I'm just not sure where to begin with this or even if I'm explaining myself properly!

[Deleted User]

You'd need to default first. Miss the next few month's payments, accrue some fees and charges, wait for them to sell you to a DCA.

Then you might be able to make them an offer. The downside to this, of course, is you won't be acepted for any sort of decent credit (mortgage, mobiles, credit cards, loans etc) for a few years. And it can be quite stressful having to deal with the DCAs I believe.

Personally, I'd pay it off.

thomasdown

davetaylor wrote: »

Hi There,

Ok, I have recently managed to get a loan for £14900 at just 6%. The purpose of this is to pay off all of my credit card debt. In the good old days I used to swap to interest free cards and never pay interest. Over the past few years I stopped being accepted for new cards and the deals all ran out and I was left paying high interest rates.

It feels awesome to finally be able to pay them off.

I wanted to know though. Since I am now in a position to pay off the full outstanding balance, am I am able to make the credit card companies a reduced offer? I mean, would they reduce the amount I have to pay?

In particular, I have two credit cards with Barclaycard. I don't know the correct term for what has happened but Barclaycard have effectively stopped it being credit card debt and simply made it a debt that is currently getting paid off at the minimum payment. One of these cards for example has a balance of around £5000. Do you think they might be willing to reduce that if I offer to settle in full? I'm just not sure where to begin with this or even if I'm explaining myself properly!

I understand what you are trying to say and I think you are going to get alot of people on here that are going to give you a hard time for what you are trying to do. I mean this in the nicest possible way but why should the credit card companies reduce what you owe them which you signed up for when you took the credit cards out. Answer is simple pay back in full what you owe. You have no right to ask really, you spent it, so pay it back. Cut the cards up and never get a credit card again. Don't spend what you can't afford to borrow and live within your means in the future. Credit cards are great if used properly i.e. cashback, freebies, 0% APR, credit building etc etc. Don't take this message as an insult just saying what I feel.

davetaylor

Hi, thanks for the replies. I don't think I want to default so I will rule that out.

Thomasdown. I get what you are saying and it's 100% fair enough. I have had the moral issue with what I am asking myself. I'm very much aware of it.

However, there are things that the credit card companies have done that i feel are underhand. In particular, with Barclaycard constantly pushing up the interest rate and then locking the cards. If I would have been more aware at the time I realise that I could have rejected the interest rate hike and had the card locked but I wasn't. By the time I realised what was going on it was too late.

So sure, I spent the money and it's my job to pay it back. At the same time, the companies have been getting a ridiculous amount of interest out of me for the past few years after hiking the rates.

So I'm not asking to cheat the system. However, if I thought there was a way of simply asking the company if they wanted to make a deal to settle in full that was tried and tested I should at least give it a go.

electrobix99

Seeing at they have locked the card out at Barclays it would be worth asking them. Do not tell them you have the money to pay the hole thing off at first. I would try phoning and then write to them if you do not get anywhere.

The only trouble is you are paying more interest while you wait for an answer.

davetaylor

Thanks! I'm wondering, when I call them. If there is a way to get through to the people that make these decisions rather than the person at the call centre just dealing with standard transactions?

electrobix99

If they have frozen your card maybe its already been passed to collections. My old student OD was even though I never went over my limit.

Miss_Spendalot_2

davetaylor wrote: »

Hi There,



It feels awesome to finally be able to pay them off.

I bet it is going to be nice to have freed some of your money each month.. :j

May I ask you something which I mean in no way to criticise you as it is very easy to spiral into debt but this question nags away at me.

When people swap their cards around on to 0% cards over and over again how long does that go on before they realise at some stage they need to be paid.. Is it because it is better to just put it to the back of the mind hence the debts just go up and up?

I think your answer will help a lot of people who find them selves in similar situations..

It is so good to see that you are finally doing something about your situation though and I hope that when you pay off your cards you remember to cancel them so you do not get the urge to use them again..

Good luck..

pheonixrising21

If you think that some of their tactics have been underhand/unfair e.g significant interest rate rises over and above the end of the 0% term, then you may have a case to complain against them.

If this was me and I thought I had a case to complain, I would pay them off first and then complain for a refund of some of the interest charged. That way you get rid of the high interest rate quickly, but still may have a chance of a refund later.

davetaylor

Miss_Spendalot wrote: »

I bet it is going to be nice to have freed some of your money each month.. :j

May I ask you something which I mean in no way to criticise you as it is very easy to spiral into debt but this question nags away at me.

When people swap their cards around on to 0% cards over and over again how long does that go on before they realise at some stage they need to be paid.. Is it because it is better to just put it to the back of the mind hence the debts just go up and up?

I think your answer will help a lot of people who find them selves in similar situations..

It is so good to see that you are finally doing something about your situation though and I hope that when you pay off your cards you remember to cancel them so you do not get the urge to use them again..

Good luck..

Hi There!

For me it was simply the cheapest way to borrow at the time. I bought two properties back then and needed cash for deposits and furnishings and so on. I did it all on my own. I was paying off the debt and haven't actually acquired any new debt for years.

So it was never a case of not realising that they had to be paid, I always new that and was paying what I could. I happily shifted from one card to another for years with the only cost being balance transfer fee's. It seemed to make sense at the time. There was only an issue when the banks stopped dishing out cards so easily! I have never defaulted on any payment ever.

blacksta

I never the understand the concept of borrowing money and spending it and some how wishing to pay back a fraction.