Is discount on early repayment/settlement possible?

cool4door64

After a good couple of years of struggling and making repayments on time I managed to get a consolidation loan. As a single parent its been hard work, I have another child on route so getting on top of my finances has been priority for a good while.

Basically my question is: Is it possible to get a discount/reduced settlement figure on loans and credit cards, without it impacting on your credit report?

I am presuming I ask for this in writing and make statements upon agreement it will be settled in full and not effect my credit report?

my debts are as follows;

£2671.22p natwest loan
£1009.33p natwest credit card
£1239.03p natwest credit card
£3046.97p Barclaycard

total = £7966.55p i have some other bits and bats I would like pay off and make the loan stretch

I have heard I can make a large payment to my natwest loan and then ask for settlement so the interest they charge is on a lower figure so saves £££s. But I want to make the most of getting this far and actually try and pay off everything.

Thanks
Paul

runforlife

It's not likely that your creditors will accept a reduced payment whilst you are meeting the minimum payments or above. Why would they? They are getting their money.

Try snowballing the cards to pay off the most expensive ones first.
http://www.whatsthecost.com/snowball.aspx

McKneff

Nomtally you can negotiate discounts etc only after you have defaulted for a few months, so your credit is trashed anyway.


Runforlife gives the best advice re clearing them.

cool4door64

thanks I first thought that it was the case if you were only under DMP or defaulted already. I wondered whether anyone who has been making payments on time and not on a dml or defaulted had managed to get any discount and how?

A lot of sites coming up with conflicting info on this

sourcrates

cool4door64 wrote: »

thanks I first thought that it was the case if you were only under DMP or defaulted already. I wondered whether anyone who has been making payments on time and not on a dml or defaulted had managed to get any discount and how?

A lot of sites coming up with conflicting info on this

Its extremely unlikely as you are contracted to make x amount of payments under the contracts you have signed.
In order to obtain a discount, you would need to break the terms of those agreements, and default, this would usually only apply after the debt has either been defaulted a long time, and/or the debt had been sold on to a DCA.


Its unlikely a creditor, with whom your payments are up to date with, would entertain such a thing, sorry !!

cool4door64

Much appreciated thankyou for the advice everyone. Don't suppose anyone know if you can ask for charges over the term to be refunded plus 29.9%? Saw it on a site