settlement figure for credit card on a plan?

Rooney_10_2

Can anyone tell me if there is a formular to be known to see how much a credit card company will accept to settle and close an account that is on a payment plan.

I have one at £2500 and wondered if i was to offer £1000 (as i got some ppi back) if this would be accepted.
i dont just want to offer £2500 if they would accept less.... ANY IDEAS ??????????????

Tixy

No there is no set formula, different lenders and differing financial situations of a debtor will get different amounts accepted.

If the debt is still owned by the credit card company and if you have already had a default registered against you then they might be open to a slightly reduced full & final settlement but very unlikely to be at the sort of levels you have suggested (probably more like to get something in the region of 15-25% discount). But it does depend on the rate you are paying back the debt, whether they have frozen interest, what they think the chances are you would go bankrupt or disappear etc.

If they debt had been sold to a debt collection agency then you might get the sort of figures you are talking about accepted.

That said if you are making such an offer (always do it in writing using a template letter so you know it says all the correct things) its always better to start low so you can increase it with a second offer if the first is declined.

Useful template letter & info here - http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=24_full_and_final_settlement_offers

Rooney_10_2

Thanks Tixy.

I have one sold on to debt company and one with current lender... i'll use the site you have attached and see what they say.

(i only got this idea when a card with £300 left on with a debt compant called me up and offered a £180 settlement figure)

I'll post back further developments