CC question

moosetastic

hi there, hope someone can help, as I am a complete dumbo when it comes to these things.

I am shortly going to come into some money which is enough to pay off all my debts. I intend to ring my loan company and get a settlement amount, does this also apply to credit cards and store cards? Or do you just pay off what you owe on these?

Thanks in advance

MrSilk

Pay what you owe

InsideInsurance

You pay off what you owe, assuming you've been paying interest then the following month you will get a bill for the outstanding interest and if you pay that in full too then your next bill will be for zero (assuming you dont keep spending)

jonesMUFCforever

Not having a pop at this particular OP, there are many on here who pay loan repayments and minimum payments on credit and store cards, but as soon as they come into money they seem to think they are doing the lenders, by paying back what they owe, a favour to them LOL.

InsideInsurance

jonesMUFCforever wrote: »

they seem to think they are doing the lenders, by paying back what they owe, a favour to them LOL.

Why? They arent suggesting that it should be a reduced amount but not aware if they can get a settlement figure to do it one or as it is in reality, you have to make 2 separate payments.

reclusive46

moosetastic wrote: »

hi there, hope someone can help, as I am a complete dumbo when it comes to these things.

I am shortly going to come into some money which is enough to pay off all my debts. I intend to ring my loan company and get a settlement amount, does this also apply to credit cards and store cards? Or do you just pay off what you owe on these?

Thanks in advance

If you want a trashed credit rating maybe but if you want to be able to get credit in the future, I'd just pay what you owe.

bigadaj

InsideInsurance wrote: »

Why? They arent suggesting that it should be a reduced amount but not aware if they can get a settlement figure to do it one or as it is in reality, you have to make 2 separate payments.

I think the question is ambiguous.

What they may mean is that should they get a settlement figure for their cards, similar to the loan, ie will the lender provide a settlement figure that covers a ll interest up to that date.

If that's the case then that's not how cards work OP, what you. An do is slightly overpay which knocks down the interst, and full payment of the following statement means purchases are then interest free.

The alternative approach is to try and pay a reduced figure in which case you'll need to default and get your credit record trashed for six years.

Hope I've covered the potential options there.

brendon

If you have a £2,000 debt with a company, and they agree to let you settle for £1,500, then you only owe £1,500 to that company. If the two parties come to such an agreement, then that's entirely fair. "Pay what you owe" doesn't really contribute much.

moosetastic

thank you for the responses guys. I genuinely didn't know if you could ask for a settlement figure on a credit card, I just didnt want to ring them up for them to laugh down the phone at me. I have every intention of paying what I owe, I just thought it was worth asking