Credit Card settlements

pk67

Looking for some advice. Friend of mine has got into a bit of a mess with credit cards and now can't pay them back. Total debt is £7k. She is trying to release the remaining equity on her house but that will not cover the outstanding amounts. She has absolutely no net income to pay the cards on a monthly basis - she has evidence of this from CAB and Debt Comps.

Been advised by an insolvency practitioner to approach the three companies (Tesco Personal Finance, Halifax and Barclaycard) to see if they would accept settlement for a % of the amount owing on the basis of something is better than nothing.

She has called all 3 today with limited response (Halifax in particular) basically saying they do not have any such thing as a "Settlements Dept". Is this right?

If they do have such depts could someone provide details, addresses and an indication of the minimum acceptable % settlement.

TIA

Debt_Free_Chick

There has been a very thorough discussion of Full & Final Settlements here

http://forums.moneysavingexpert.com/showthread.html?t=34868

And the National Debtline advice is here

http://www.nationaldebtline.co.uk/england_factsheets/factsheet_24.php3

However, I doubt that she will be able to realise the outstanding equity on her property, as that will take her up to 100% of the value of the home.

A robust budget and a Debt Management Plan should be considered, with full details in this self-help pack

http://www.nationaldebtline.co.uk/england_factsheets/debt_advice_england_wales.php3#3

pk67

Thanks for the pointers - some really useful information.

Cheers

razzles

Hi

I had credit card debits of over 50k,(went to cab for advise) I have managed to deal with MBNA 80% settlement, COOP the same, they refused at first then sent my financial statement and offered £1-£3 a month to each creditor and they both changed their minds. I am still trying to deal with Halifax, BOS and Sainsburys, (all Halifax), Evans / GE Capital have settled on a £1 a month on debit of £1000, not interest in the £750 offer. I can cannot get any where Halifax at all. Every time I phone up the people on the phone just read from script!. They say they do not do settlements anymore!!! Just cannot get through to them at all, have told them about MBNA and COOP just falls on deaf ears!
So any help /tips for Halifax would be great.