Full and Final Settlement Offer?

Roebuck_2

Hi Ladies and Gents,

Looking for a bit more advice please...

Wife has approx £2700 on Barclaycard @27% and £1600 on M&S card @23%.

Only making the minimum payments each month.

If we were to tell them we were skint and offer to settle in full (money being gift from family), do you think we would still have to pay the full outstanding balances or could we expect a reduced settlement figure?

Thanks in anticipation...

[Deleted User]

Not while you're still making at least min payments. You'll need to default and take the hit on your credit records before they would even consider it.

It will probably need to get to the DCA stage first.

Eonel

Reduced Full & Final settlements will generally only be accepted for borrowers that have already defaulted. You will need to contact Barclaycard and explain/prove your financial hardship. They may put you on a payment plan, freeze interest and ultimately sell your debt to a Debt Collection Agency.

At some point in the future, they may then be willing to consider a Full and Final reduced settlement ( as they will have reduced expectations of ever getting the money back )

However, be aware this will trash your credit record for the next 6 years and you will find it very difficult to borrow from any mainstream lender.

Roebuck_2

Thanks Guys,

It was worth a try I suppose!