Credit Card - Full & Final Settlement

flipflop_2

I would be very grateful if anyone could help me please. After getting into desparate financial straights I have remortgaged my house for the maximum possible in order to clear outstanding balances on my credit cards. Unfortunately this will still leave me with approximately £7,000 outstanding on the cards, it has been suggested that I write letters to all my credit card providers making them a 'full & final offer' at an amount below the outstanding balance. Does anybody have any experience of this working & what percentage of the outstanding balances would likely to be feasibly accepted by the credit card companies. Thank you

midebt

snap


we are in the same boat and have just posted the same question
hope u get some replys

angelavdavis

I recommend starting at about 35%-40% and then go up to the maximum of 70%. A word of warning, don't make a lump sum payment before asking, because they will hold out for 100% thinking you might have more money stashed somewhere. So work on these percentages on the overall debt first and don't make the lump sum payments.

Also, ensure you can actually afford the amount (sounds obvious, but....!)

There are letters on www.nationaldebtline.co.uk for making final offers.

You need for the creditors to use the words "full and final settlement" in their letters (they try all sorts of wording to get away with this) and also ensure they agree to updating your credit file to the words "settled" not "partially settled" as it leaves doors open to chase you in future and will affect your ability to get credit in future.