Credit Card Discounts?

Fillbs
Forumite Posts: 1 Newbie
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?
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?
0
Comments
-
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.0
This discussion has been closed.
Categories
- All Categories
- 340K Banking & Borrowing
- 249.1K Reduce Debt & Boost Income
- 448.3K Spending & Discounts
- 231.9K Work, Benefits & Business
- 603K Mortgages, Homes & Bills
- 171.6K Life & Family
- 245.1K Travel & Transport
- 1.5M Hobbies & Leisure
- 15.8K Discuss & Feedback
- 15.1K Coronavirus Support Boards