Credit card settlement

nick29

Hello,

I have heard of people settling outstanding credit card debts with the cc providers and I would like to explore this option to reduce my debts.

I have two MBNA cards with aprx £8000 outstanding (combined). I have the cards for about 4 years and I have been paying the minimum amount (original debt £11500).

Can someone please advise me on how to do it (ie how to approach the company what amount is likely to be accepted etc ?)

Thanks,
Nick

[Deleted User]

They'll only accept the full amount.

To get a reduction, you will first need to trash your credit file beyond repair. Miss payments, defaults, have it sold to a DCA and dodge the balliffs for a few months. They may then accept an offer.

Only you can decide if it's worth it.

Rafter

Nick,

As zx81 says, unless you want your credit record transhed for a minimum six years then paying back what you owe in full is the best way.

Suggest you get yourself over to the debt free wannabe board and get some ideas about how do it.

As long as you have got a decent income and can cut your outgoings and use techniques such as snowballing you could be surprised how quickly you can get that £8k down if you put your mind to it - and once you are no longer paying MBNA nearly £2,000 in interest a year your debt will fall much faster.

Good luck

R.

moohound

I only got as far as the defaults part before they took full and final payments, Rather than the sold to DCA and dodge balliffs, but if you are up to date on to payments then you must pay the amount in full.

I have 9 defaults and no hope of getting credit until they drop off, I could not care less, I never want credit again anyway.

Are they charging you the same interest on both cards? Use the snowball calculator, to see if you can save interest and pay it off quicker.

Iwillresolvemydebt

Where would one find said "snowball calculator"?