When to offer a full and final settlement?

amyloofoo

Hi,

I'm hoping for some advice. I have two credit cards with outstanding balances (Capital One and Vanquis) which I've agreed repayment plans with. When I was discussing this with my MIL she offered to lend me some money to offer full and final payments on these and close the accounts (as we're looking to start a family / buy a house soon and would rather not have these debts hanging over us). Is this appropriate in my situation or would they insist I continue to make the agreed repayments? About which figure would be appropriate to offer? Would this affect my credit history? Lots of the debt total is made up of late fees etc from when I was unwell so whilst I'm more than happy to pay back anything I actually spent, I do find it galling to pay so much in fees (although I'm not saying these are illegal or against my contract, etc - I'm fully aware that I agreed to them by using the cards).

Stigy

They're still being paid pressumably? Nothing wrong with a cheeky request, but I'd imagine they'll stick to their guns. From experience, the original creditor seldom offer settlements, and the only way of getting one is a long time after a default, and when the debt's been sold to a DCA for a pittence of its original value....If they think you'll still pay them the minimum amounts, what have they to gain? I guess getting the majority of the cash up-front might whet their appetite somewhat?

amyloofoo

Stigy wrote: »

They're still being paid pressumably? Nothing wrong with a cheeky request, but I'd imagine they'll stick to their guns. From experience, the original creditor seldom offer settlements, and the only way of getting one is a long time after a default, and when the debt's been sold to a DCA for a pittence of its original value....If they think you'll still pay them the minimum amounts, what have they to gain? I guess getting the majority of the cash up-front might whet their appetite somewhat?

Thanks, I did think this might be the case but thought it was worth asking due to the very kind offer from MIL. It would feel amazing to get some of these debts cleared sooner rather than later, but looks like I'm going to have to take the lengthy route

bengal-stripe

Even if the CC were to agree a partial settlement (rather doubtful at this point), the account(s) would be marked as "partially settled".

That means you can kiss your mortgage good-bye for the next six years.

Stigy

bengal-stripe wrote: »

Even if the CC were to agree a partial settlement (rather doubtful at this point), the account(s) would be marked as "partially settled".

That means you can kiss your mortgage good-bye for the next six years.

Would it? I know other debts, granted they'd already be at default level, show up at satisfied if a settlement is reached, regardless of how much said settlement is. I guess that is what a settled account looks like, rather than "satisfactory" which suggests the account is still active and open?

fatbelly

If the credit card is already defaulted then that is going to remain on your file for six years from that date, and then drop off.

A settled (even partially settled) default looks better than an unsettled one.

Vanquis usually continue adding interest even on repayment plans. You don't say whether that is the case, and how substantial are your repayments - what is the debt-free date? If this is a long way off then there's every possibility that they would consider your offer to settle using third party funds. Adapt the standard letter in the factsheet

Factsheet | Full & Final Settlement offers

If you're considering a Debt Relief Order I wouldn't do it because you have to have treated your creditors equally. If your surplus income is under 50 per month, you're in rented accommodation and you don't own a car worth over 1k then £90 from MIL and a DRO does the job.

kerinat

Have you phoned them to see if you have paid ppi on any of the loans. You may have ppi on loans, hp, credit cards and store cards. Give them a quick ring and ask them. Then download the form from this web page -Reclaim thousands...

sickasachip13

Hi,
Cap One - we're on a DMP and Cap1 accepted a F&F from us, from memory it was just under 30% of what was owed. We were happy with that. I reckon it's probably worth a try, you've nothing to lose really.
SAAC