Negotiation when paying off a CC balance in full

keiththelemon

Anyone had any experience in negotiation with a credit card company when paying of a balance in full?


I am in a position where I am able to pay off a substantial debt with 4 x credit card companies in full. I wondered whether I could "negotiate" a settlement figure without hurting my credit report or classing as defaulting

[Deleted User]

If you've already defaulted, then you could try.

However, you may need to wait until it gets sold to a debt collector to get any kind of decent reduction. A few months missed payments won't be enough - you need to properly trash your credit file first.

Obviously if you haven't already defaulted, they'll expect you to pay the full amount.

keiththelemon

Hi


Yes, I've not defaulted at all, not missed any payment etc - I just wondered if a company was given "I might default" or I can't pay story, I would get the debt reduced

[Deleted User]

No. They'll just close your card down so you can't run up any more debt and increase your APR to cover the increased risk.

jonesMUFCforever

You MIGHT be able to get a reduction but 1) your cards would be closed down and 2) would definitely hurt your credit files as payments would show as an arrangement or partial payment.
Depends I suppose on whether you need any fresh credit going forward - think about things like mobile phone contracts etc not just loans overdrafts and credit cards.

shortcrust

I doesn’t make sense. You’d be saying you might not be able to afford your monthly payment, oh but you just happen to have a big lump sum! I don’t think they’re that daft, but give it a try and let us know how you get on.

foxy-stoat

shortcrust wrote: »

I doesn’t make sense. You’d be saying you might not be able to afford your monthly payment, oh but you just happen to have a big lump sum! I don’t think they’re that daft, but give it a try and let us know how you get on.

Same old same old....I advertised a iphone 6 for £125 and I had a string of people who offered me £100 for it, just because they added the word "cash" - how else are they thinking of paying for it!

The op is the same - he owes £X but thinks he can negotiate what he owes just because he wants to settle it....no idea why the credit card company would entertain that idea, unless he has defaulted for many months.

Good luck OP and report back if you get anywhere

Brummie85

Spending on how much you owe the cards and the savings rates you can get...Probably smarter to move the cards to one with a better rate. I'm looking at a Virgin one now with a 0.6% fee on transfers for 32 months. that basically means you can borrow £10,000 for 32 months and it will cost you £60 in total, providing you pay it back in full in the promotional period.

Pay the new card over the 32 months as normal. But put your money that you were going to pay off with to better use in savings over the same term.

When the good rate on the card ends, pull your money back from the savings scheme and pay them off. Even if you only get a saving rate of 4%, you are still making money.

The cards won't negotiate a settlement, but moving to a card that you pay next to nothing to use and then earning interest on your own money instead is probably the net best option.

PixelPound

Absolutely zero chance to get a partial settlement without it affecting your credit file. If you ask they will assume you have money worries and probably freeze your account.

What would you say if your company offered to pay your wage a few days early in cash but pay you for one week less than you owed?

agrinnall

Here's a radical thought: why not just pay back the money that you spent?

foxy-stoat

agrinnall wrote: »

Here's a radical thought: why not just pay back the money that you spent?

This sort of talk will get you no where !