Credit card repayment

jss999

I have 5 cards , which are more or less maxed out.  I have a small amount of money from a relative heading my way soon. It will not cover all the debt. Has anyone had experience of card companies accepting a "settlement " figure on the balance, similar to a hire purchase agreement facility? Thanks 

Ebe_Scrooge

This is usually only possible if you're in dire financial difficulties, are unable to make even minimum payments, and have come to a formal agreement with them.  And doing this will mean your credit file is trashed for the next 6 years, meaning you'll have next to no chance of obtaining any further credit of any sort.  Not a move to be undertaken lightly.

If you're not wanting to go down this route, throw the cash at the card with the highest APR.  Then head over to the DFW board to get some advice on how to reduce your outgoings so that you can pay down the remaining debt in the shortest possible time.

jss999

Thank you.

bonkersbonkers1

Pay off the highest APR cards first and snowball the rest until your money runs out.
Then attempt to tackle what is left to pay.

Sandtree

They are under no legal obligation to accept less than what you owe and so why would they when they can keep adding interest and making money from you?

Personally I have once had a bank accept a full and final settlement for less than the monies owed but this was due to a financial associate at the time (presumably) getting into trouble and them closing our dormant joint account... in that case they allowed a reduce settlement on a joint loan (which in practice if not legally had become mine alone and was fully paid up to date) but wouldn't consider anything for products held in my own name. 

Unfortunately whilst they agreed it as full and final settlement they marked it on my credit record as a partial final settlement and it took some time to get them to correct it (they admitted it was their error immediately but systems weren't playing ball).

At the end of the day if you don't ask you don't get but don't have high hopes and be aware if it is marked as partially settled its a big black mark on your credit rating.