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Credit card debt settle??

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SkintDarkknight
SkintDarkknight Posts: 38 Forumite
Fourth Anniversary 10 Posts
edited 5 September 2020 at 5:29PM in Debt-free wannabe
Apologies if in wrong place.
What is the best ratio of   debt : payment offer?

I am looking to settle my cc debts at a reduced rate but was curious about what was the best settlement ratio to offer? (10%, 25%, 50%. Etc?).

I have already managed to get my interest/fee's frozen & am currently repaying a nominal sum to my 7 creditors per month.

Thanks in advance. ☺

Comments

  • bigadaj
    bigadaj Posts: 11,531 Forumite
    Ninth Anniversary 10,000 Posts Name Dropper
    OP - first up how are you in a position to settle now. An arrangement o pay and suspension of interest is normally predicated on an inability to pay unsurprisingly, so if there has been dishonesty in declaring assets or income that could come home to bite. If it's an inheritance or similar change in financial position then there may be limited options for negotiation, any offer would be met with an assumption that the debt can be paid. Once the debt has been sold on, typically for a percentage of the gross amount, then offers would be met with more interest. 
  • born_again
    born_again Posts: 20,363 Forumite
    10,000 Posts Fifth Anniversary Name Dropper
    Are they still with the credit cards or have they sold the debt's on?
    You can offer what you feel, but they can still decline you. But as above, you can be opening a whole new can of worms if you are unable to settle all 7 of them in one go. As once they realise another card has been settled, and they will find that out. They will want their pound of flesh.
    Life in the slow lane
  • bigadaj said:
    OP - first up how are you in a position to settle now. An arrangement o pay and suspension of interest is normally predicated on an inability to pay unsurprisingly, so if there has been dishonesty in declaring assets or income that could come home to bite. If it's an inheritance or similar change in financial position then there may be limited options for negotiation, any offer would be met with an assumption that the debt can be paid. Once the debt has been sold on, typically for a percentage of the gross amount, then offers would be met with more interest. 
    I was unable to pay very  much but a relative has offered to help me out a little.

    Some are sold on. Others are with cc.
    I would be looking to try to settle them all in one go but cannot afford to pay the full amount on each one.
  • sourcrates
    sourcrates Posts: 31,516 Ambassador
    Part of the Furniture 10,000 Posts I've been Money Tipped! Name Dropper
    Moved to DFW board.
    I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter
  • sourcrates
    sourcrates Posts: 31,516 Ambassador
    Part of the Furniture 10,000 Posts I've been Money Tipped! Name Dropper
    edited 5 September 2020 at 5:46PM
    Hi,
    You are 100% free to get the very best deal you possibly can on these debts.
    Best results will be obtained from accounts already sold on, they buy the debts very cheap, so can afford to discount heavily, original creditors may offer a small reduction, but not much, maybe best to wait till they are sold on too.

    There is a standard process we normally recommend on here, first off, you excercise your rights under sec 77/79 consumer credit act, to request a copy of your credit agreement, this is to asertain your legal position.
    If a creditor cannot provide evidence of the debt, in the form of a properly executed credit agreement, then you may be able to settle for a good deal less, or you could just walk away from it and pay nothing.
    Information and template letter can be found here -

    Once you know the answers to the above, then start with your offers, start low, around 30% of the outstanding balance, remember, you can always increase your offer.
    Offers should be made in writing, using this letter -
    Any agreement must be confirmed in writing before you part with a penny, if asked, (and you will be), "where is the money coming from ?" you say a third party has offered to help, and leave it at that.
    This process can be more of a marathon, than a sprint, but should get you a good result in the end.


    I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter
  • Hi,
    You are 100% free to get the very best deal you possibly can on these debts.
    Best results will be obtained from accounts already sold on, they buy the debts very cheap, so can afford to discount heavily, original creditors may offer a small reduction, but not much, maybe best to wait till they are sold on too.

    There is a standard process we normally recommend on here, first off, you excercise your rights under sec 77/79 consumer credit act, to request a copy of your credit agreement, this is to asertain your legal position.
    If a creditor cannot provide evidence of the debt, in the form of a properly executed credit agreement, then you may be able to settle for a good deal less, or you could just walk away from it and pay nothing.
    Information and template letter can be found here -

    Once you know the answers to the above, then start with your offers, start low, around 30% of the outstanding balance, remember, you can always increase your offer.
    Offers should be made in writing, using this letter -
    Any agreement must be confirmed in writing before you part with a penny, if asked, (and you will be), "where is the money coming from ?" you say a third party has offered to help, and leave it at that.
    This process can be more of a marathon, than a sprint, but should get you a good result in the end.


    Wow! Now that is AN Answer!!
    Very helpful without judgement.
    That has to be the most helpful & informative answer i've ever seen, anywhere.
    Maybe some of the other punters on here could take a leaf out of your book.
    Thankyou so much.
    🙂
  • Hi,
    You are 100% free to get the very best deal you possibly can on these debts.
    Best results will be obtained from accounts already sold on, they buy the debts very cheap, so can afford to discount heavily, original creditors may offer a small reduction, but not much, maybe best to wait till they are sold on too.

    There is a standard process we normally recommend on here, first off, you excercise your rights under sec 77/79 consumer credit act, to request a copy of your credit agreement, this is to asertain your legal position.
    If a creditor cannot provide evidence of the debt, in the form of a properly executed credit agreement, then you may be able to settle for a good deal less, or you could just walk away from it and pay nothing.
    Information and template letter can be found here -

    Once you know the answers to the above, then start with your offers, start low, around 30% of the outstanding balance, remember, you can always increase your offer.
    Offers should be made in writing, using this letter -
    Any agreement must be confirmed in writing before you part with a penny, if asked, (and you will be), "where is the money coming from ?" you say a third party has offered to help, and leave it at that.
    This process can be more of a marathon, than a sprint, but should get you a good result in the end.


    Wow! Now that is AN Answer!!
    Very helpful without judgement.
    That has to be the most helpful & informative answer i've ever seen, anywhere.
    Maybe some of the other punters on here could take a leaf out of your book.
    Thankyou so much.
    🙂
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