Settling CC's at once

illmonkey

Hopfully soon i will be selling my flat and making a tidy sum of profit on it. I plan to clear the debts and rent for 6 months to sort myself out.

My question is, if i approach my CC companys saying i can settle now or keep paying monthly, will they give me a lower settlement figure?

I know it sounds stupid as they make more money by me paying it off over time, but they freeze intrest etc for people who cant pay. I also have a large loan i was thinking about doing the same.

Thanks

housebuyer_abc

illmonkey wrote: »

Hopfully soon i will be selling my flat and making a tidy sum of profit on it. I plan to clear the debts and rent for 6 months to sort myself out.

My question is, if i approach my CC companys saying i can settle now or keep paying monthly, will they give me a lower settlement figure?

I know it sounds stupid as they make more money by me paying it off over time, but they freeze intrest etc for people who cant pay. I also have a large loan i was thinking about doing the same.

Thanks

A simple answer really ...

"Why should they????"

If a neighbour borrowed 2000 from you and agreed to give it back to you at 200 a month, and the next month won the lottery and suggested he'd settle the debt for 1500 in cash today would you be happy???

Get real you spent the money you should pay it back if you can afford to.

I have sympathy for people who get into difficulties, but you are just out for a quick buck and are morally much worse than the so called 'money-grabbing banks'

GeorgeUK

Short answer - no

CC - The longer you take to pay what you owe the happier they are as they can jsut add more interest. The would rather you keep pay monthly and not give a lower figure. Pay it all back and stop paying the interest.

The Loan - depends on the terms really. Some loans allow you to overpay, but you are still penalised if you pay off the loan early. If this is the case, pay off most of the loan, but keep a small amount so that they may charge interest on say £100 and you keep paying your minimum payments. That way at leasy you dodge any fee and get away from higher interest charges.

If they don't allow you to overpay, work out if the fee they charge for early payment of the full loan is cheaper than the interest you will be paying over the full period.

As to asking if they will give a lower settlement figure, i don't know. The may give a slight discount on the charge, but would expect them to want the full loan amount repaid.

Others may be able to advise whether haggling with a bank is a good idea or not. Personally, i'd just try to pay the cheapest way without contacting them.

illmonkey

housebuyer_abc wrote: »

A simple answer really ...

"Why should they????"

If a neighbour borrowed 2000 from you and agreed to give it back to you at 200 a month, and the next month won the lottery and suggested he'd settle the debt for 1500 in cash today would you be happy???

Get real you spent the money you should pay it back if you can afford to.

I have sympathy for people who get into difficulties, but you are just out for a quick buck and are morally much worse than the so called 'money-grabbing banks'

Ooookk. Calm down.

The fact i've paid hundreds of intrest on these debts already, and then they can accept a settlement.

I don't know how they work, hence the question.

I understand i've spent the money, i do. It was a general wondering if they will give so movement so they get debt paid back so they can re-lend it to someone who will pay minimum payments (ie loads of intrest).

peawack

housebuyer_abc wrote: »

A simple answer really ...

"Why should they????"

If a neighbour borrowed 2000 from you and agreed to give it back to you at 200 a month, and the next month won the lottery and suggested he'd settle the debt for 1500 in cash today would you be happy???

Get real you spent the money you should pay it back if you can afford to.

I have sympathy for people who get into difficulties, but you are just out for a quick buck and are morally much worse than the so called 'money-grabbing banks'

It's a fair question.
This is a money-saving website isn't it ?

tom188

peawack wrote: »

It's a fair question.
This is a money-saving website isn't it ?

To follow that line of argument a bit further why pay it back at all. Real money saving in action no doubt.

Seriously though, if you are not in arrears, no chance.
If you are way behind then the companies may listen as they'd rather get something back than nothing at all.

moz86

Yeh its a nice idea you've come up with there, but the fact you've paid tonnes of interest already isn't likely to make them give you a discount! Unfortunatley you agreed to a set of terms when you got the card, and by using it and spending beyond your means you let them have a level of power over you. At the end of the day, that money still belongs to someone even if it is a "faceless" company, so it has to be paid in full.

Although on a lighter note. Well done on paying all your debts off, and your rent etc! I'm sure if you're like anyone else here, you'll feel like a great weight has been lifted. Someone should be able to give you constructive advice on how to avoid early payment charges etc.

Moz.