Credit Card Discounts?

edited 30 November -1 at 1:00AM in Stoozing: Free Cash from Credit Cards
1 reply 929 views
FillbsFillbs Forumite
1 Post
In the next month I'll have a cash lump sum payment that will enable me to pay off my credit cards, which are all on interest free and the debt amounts to approximately £10,000.

Rather than paying them off completely, I was going to continue keeping them as they are, paying the money into a savings account and just using it to pay the minimum each month, until such time when I have to start paying interest. However, somebody told me that you can ring the credit card companies up and offer them a settlement figure to pay off the debt, which can be as much a 20% less that what is outstanding.

Is this correct and has anyone else done it?

Replies

  • EonelEonel Forumite
    451 Posts
    They will only consider a reduced settlement where you have defaulted on the debt some time ago, have been passed between Debt Collection Agencies & generally trashed your credit record.

    Quite the opposite of where you are. You need to keep with plan A. Put the cash in savings earning a few pennies interest before paying off the credit card when 0% runs out.
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