Credit card debt settle??

SkintDarkknight

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. ☺

bigadaj

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

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.

SkintDarkknight

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

Moved to DFW board.

sourcrates

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 -

https://www.nationaldebtline.org/EW/sampleletters/Pages/Information-about-your-agreement-under-the-Consumer-Credit-Act-(sole-name).aspx

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 -

https://www.nationaldebtline.org/EW/sampleletters/Pages/Full-and-final-settlement-offers-(sole-name).aspx

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.

SkintDarkknight

sourcrates said:

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 -

https://www.nationaldebtline.org/EW/sampleletters/Pages/Information-about-your-agreement-under-the-Consumer-Credit-Act-(sole-name).aspx

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 -

https://www.nationaldebtline.org/EW/sampleletters/Pages/Full-and-final-settlement-offers-(sole-name).aspx

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.
🙂

SkintDarkknight

sourcrates said:

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 -

https://www.nationaldebtline.org/EW/sampleletters/Pages/Information-about-your-agreement-under-the-Consumer-Credit-Act-(sole-name).aspx

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 -

https://www.nationaldebtline.org/EW/sampleletters/Pages/Full-and-final-settlement-offers-(sole-name).aspx

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.
🙂