paying off credit cards

essexfan_2

We are going to be in a position to pay off our substantial credit card debts soon, but wondered if anybody knows if we are likely to be able to negotiate a full and final payment with them as full payment would be difficult

jamesd

Have you defaulted already? If you have not defaulted you will not be able to negotiate a full and final settlement deal for anything less than the full amount due.

What you can do instead is pay down much of the balances of the most expensive cards and look for 0% for purchase card deals or balance transfers as your credit record shows that you have reduced your outstanding debts.

essexfan_2

No we have not defaulted so it looks as if we are just going to have to try to pay all of it,we don't want to start 0% cards again as thats how we got into this mess. Thanks for the reply Jamesd:)

dotdash79

Get a 0% Balance transfer card, transfer anything left over calculate how much you need to pay off each month to clear the debt by the end of the deal. Set that as your DD amount and cut up card.

izools

Once you've paid off all you can, if there's anything left over, wait two months before trying to get a 0% card for the remainder - you'll be much more creditworthy once the reduced balances reflect on your credit files - but this can take up to two months.

You may wish to avoid 0% deals as you say that's how you got into trouble initially but so long as you're strict with yourself - close the old accounts straight away and leave the 0% card in the back of a drawer - it will be a good move, saving you money.