CC Debt.

Rick_Albright

Hi there,

I am asking for a friend:

He has just paid off a credit card (nearly) only £500 remaining.

He has another credit card with £2,400 he tells me he looks to get an partial settlement, will this damage his file and for such a low amount is it worth it. He can afford to pay it he tells me just simply wants to wipe the slate clean. I see this as a exceptionally low debt.,

Also what is the average debt people have (EXCL mortgages) in the UK on credit cards anybody know?

Many thanks.

Willing2Learn

It is extremely unlikely that your friend's credit card provider will accept a partial settlement. Why would they, when they can still keep receiving interest? (I am assuming that the card account has not been defaulted).

If the account has already been defaulted, or on a payment arrangement (AP), then the credit file would already have been negatively marked.

EssexHebridean

First off I'd say ignore national averages etc as they are meaningless. £3k debt to someone earning minimum wage is more significant than a debt of 5 times that to someone on £100k a year for example - so averages really don't tell us anything as far as individual cases are and can actually be harmful to those who are in debt if they then use the figures to make themselves feel that "things could be worse".

The best way of your friend wiping the slate clean is to budget effectively, clear the debt ASAP and then move on without creating any more. Is he currently in arrears at all? If so then there's pretty much no chance that the card company is just going to come along and say "Oh yes, that money you spent on flash electronics, sharp suits, dog food, plants for the garden or going on holiday? Absolutely fine to not pay half of it back..." - just not going to happen realistically. My suggestion would be that if he can afford to pay it, and there is no real reason for not paying it, then frankly, he needs to knuckle down and just, well, pay it!

sourcrates

Average UK household debt now stands at a record £15,400. Britain's household debt mountain has reached a new peak, with UK homes now owing an average of £15,385 to credit card firms, banks and other lenders, according to the TUC.7 Jan 2019.

Source : The Guardian.com