Full and final offer to clear credit cards

hoverFrog

Hi,

I was made redundant last week but I was fortunate to start a new job on roughly the same money straight away. Having been there 18 years I'm getting about £10k in redundancy. Unfortunately I've got about £25k in credit card debts.

While a holiday and some home improvements are attractive they're also stupid when I owe that much. I'd prefer to rid myself of debt entirely. I'd like to offer a full and final settlement to the credit card companies but how much should I offer? What is the minimum they are likely to accept?

For full disclosure my parter was made redundant a few years ago and we got into arrears so all of the credit cards we have are already defaulted on. I've been making interest free lower than minimum payments for years.

What I want to do is to clear the debts and have a little left over as a buffer going forward. Some may think to judge me for not paying the full amount but they've made a profit on the interest over the years so I'll just have to cope with being judged.

Thanks.

[Deleted User]

Are they defaulted or in arrears?

If not then you need to pay the full amount owed.

Even if they are defaulted or in arrears they’re. Or obliged to accept a payment of your choosing.

The same applies if they are with a collection agency

jonesMUFCforever

Good luck with putting in offers - expect the cards to stop working immediately as card lenders will see you as high risk in financial difficulty.

NeverendingDMP

Have you got a few debts spread out that are smaller amounts or are they a couple of big ones. Who do you owe , debt agencies or credit cards. I have recently agreed a settlement with a debt agency for about 60% of one of my debt. I offered about 40% and they agreed on 60. Ive been making smaller payments for approx three years and just got lucky to have some money to chance my luck. There is a full and final help thread that's worth a read to get ideas and see what people have had agreed.

fatbelly

op says 'all of the credit cards we have are already defaulted on. I've been making interest free lower than minimum payments for years'

You're going to get the best deals at the point where the lender is considering selling the debt to a buyer like Lowell or Cabot. Unfortunately you're not in charge of the timing of that.

With a bit of work, 10k should pay off 25k debt by F&F deals.

There is a thread here that you might like to post on:

https://forums.moneysavingexpert.com/discussion/115430/full-and-final-settlement-help-thread

and guidance here

https://www.nationaldebtline.org/EW/factsheets/Pages/fullandfinalsettlementoffers/lumpsumoffers.aspx

Just remember not to start at the full 40% to give yourself some room to negotiate. Try 30% for starters.

mchale

Naf wrote: »

And people's circumstances changing causing defaults etc. are just some of the risks of said business.

Then maybe people should live within their means, and not get in 25k of cc debt and if they do get in debt at least have the moral values to pay what they owe.

hoverFrog

NeverendingDMP wrote: »

Have you got a few debts spread out that are smaller amounts or are they a couple of big ones. Who do you owe , debt agencies or credit cards. I have recently agreed a settlement with a debt agency for about 60% of one of my debt. I offered about 40% and they agreed on 60. Ive been making smaller payments for approx three years and just got lucky to have some money to chance my luck. There is a full and final help thread that's worth a read to get ideas and see what people have had agreed.

I have half a dozen cards with amounts between a few hundred pounds to about £8k.

I'll check out the F&F thread, thanks.

hoverFrog

venison wrote: »

Erm this is a forum to help people not judge them :mad:

Yeah, I agree. I was expecting someone to say something like that but not so many. Why the judgmental attitude?

Oh well.

fatbelly

hoverFrog wrote: »

Yeah, I agree. I was expecting someone to say something like that but not so many. Why the judgmental attitude?

Because you posted on the credit card board and not the debt-free wannabee board.

That's where you'll find non-judgemental ongoing support

hoverFrog

Ah, my mistake, fatbelly.

PixelPound

You need to request settlement figures, and get that in writing. Be aware that the defaults will be updated to partially satisfied, a full and final payment would be for the full amount and show it as satisfied. You don't say how old the debts are and whether they are still with original creditors.
As FB suggests maybe a post on the DFW board (and note that you posted here first, since some people do not like the same Q posted on 2 places)