Debt offers

Grayfield18

I have crashed a number of credit cards which i have then negotiated with the Companies and kept to the agreements. MBNA have now written to me saying the 6 months is nearly up and that i can continue with the arrangement or i can make them an offer to close the account.

I have seen all the adverts to "wipe" 80% of your debt. Do i offer them 20% or is that unrealistic ?

If i do this rather than going back to paying the monies owed would it affect my credit rating as a recorded unpaid debt ?

sourcrates

Grayfield18 wrote: »

I have crashed a number of credit cards which i have then negotiated with the Companies and kept to the agreements. MBNA have now written to me saying the 6 months is nearly up and that i can continue with the arrangement or i can make them an offer to close the account.

I have seen all the adverts to "wipe" 80% of your debt. Do i offer them 20% or is that unrealistic ?

If i do this rather than going back to paying the monies owed would it affect my credit rating as a recorded unpaid debt ?

Hi,

The line your quoting there is actually reffering to an individual voluntery arrangement (IVA) not a full and final settlement offer.

It's anyone's guess what they will accept to close the account, some companies, for example, avant credit, are offering to close defaulted accounts for as little as 8% of the outstanding balance at the moment, so it's always worth making an offer, if they say no, you can always increase your offer.

It would show on your file as partially settled.

National_Debtline

Hi

If you do make them a full and final settlement offer it's a good idea to do it in writing. There is a sample letter here you can use:

www.nationaldebtline.org/EW/sampleletters/Pages/Full-and-final-settlement-offers-(sole-name).aspx#

Make sure that they accept your settlement in writing before you make any lump sum payment to them.

James
@natdebtline

fusionx212

poppasmurf_bewdley wrote: »

You've 'crashed' a number of credit cards, can't afford to pay back what you have borrowed, and you're wondering if your ability to borrow more money will be affected?

In the words of John McEnroe "You cannot be serious!"

everyone has the right to rebuild, he's not stopped paying.

you do not know his circumstance maybe take a second and consider before giving someone a hard time who is seeking advice.

he has every right to try and get himself back on track.

poppasmurf_bewdley

fusionx212 wrote: »

everyone has the right to rebuild, he's not stopped paying.

you do not know his circumstance maybe take a second and consider before giving someone a hard time who is seeking advice.

he has every right to try and get himself back on track.

But the OP isn't talking about rebuilding. He's concerned with his credit rating, which means he's thinking about borrowing more money. If he wasn't thinking about borrowing more money, he would have no concern about his credit rating.

He (or she) needs to be thinking how to repay what is already owed.

It's not about giving the OP a hard time. It's about dealing with the facts.

fusionx212

but a clear credit file is the way to getting out of debt, he may have plans like owning a house, (like my self ) which means yes he will be looking to getting his credit report on track and all his ducks in a row.

BrightLights14

poppasmurf_bewdley wrote: »

But the OP isn't talking about rebuilding. He's concerned with his credit rating, which means he's thinking about borrowing more money. If he wasn't thinking about borrowing more money, he would have no concern about his credit rating.

He (or she) needs to be thinking how to repay what is already owed.

It's not about giving the OP a hard time. It's about dealing with the facts.

And a bad credit record can also affect job prospects, and applications for rent etc. Don't be so judgmental. This forum is supposed to be a place for advice and support, not condemnation.

OP - don't take it personally. Some people get a kick out of putting others down via an online forum. Ignore them & listen to the posters offering support. Good luck with everything!

Grayfield18

Hi
I am a "He".
Thanks for the help and even the observations from Poppasmurf.
I am happy to pay what i have borrowed. The letter came from them making the suggestion that i could make them an offer. If they are happy with an offer then that's up to them surely. I have never even enquired on one of the IVA sites as it would not be my way to deal with this. I came on this forum for sensible advice.
I am not looking to borrow anything further now. I have felt more relieved by living within my pay and money i have in my hand. Also talking to the lenders and them being reasonable with me has helped. I am self employed and have kept paying staff rather than me, which is how i have got into this position.
I may once i get straight & paid off the people i owe, then, look to buy a house and i was perhaps at this stage foolishly thinking as to how my credit rating would be affected if i could take up this offer, as this is my largest debt and my parents are considering assisting me.
The house purchase is a long term thing.

sourcrates

Grayfield18 wrote: »

I have never even enquired on one of the IVA sites as it would not be my way to deal with this. I came on this forum for sensible advice. .

The line you quoted, "wipe 80% off your debt" was a claim made by companies trying to sell IVA's.

Nothing to do with making full and final settlement offers.

Just pointing that out to you.

Grayfield18

I know that the 80% claim is one made by IVA's.
That is why i asked the question on here.

I am a bit new to this debt situation. I have always managed all my commitments and have no intention of avoiding them. The MBNA asked me the question. I wanted to find an impartial view as to the answer. I have of course seen the adverts about 80% off. They are all over the web. Are you in Debt over £5000.00 etc etc.

If the MBNA a grown up Company ask me to consider making them an offer then i need to think about it.
If they are happy to allow me to pay less then that's up to them.

I asked the question, because i was interested to see if any one else had had this experience. I wouldn't like to go to them with an unrealistic offer. Or go to them with an offer if it's not in a range i could afford. Not least, because i don't want them then pressurising me to pay the offer regardless of them compromising the debt or not.

If they'd not raised it i would not have asked and would not have considered asking. Nor, would i have gone down the IVA route. I borrowed the money and am happy to pay.

fatbelly

MBNA used to offer people the chance to clear their account before they sold it by paying 30p in the £. I haven't seen those letters for a number of years but that's a ballpark figure for you.

It's still more than they would get by selling it to a debt buyer.