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Clearing credit cards - will they negotiate final settlement ?
MerlinTheCat
Posts: 11 Forumite
in Credit cards
I have the opportunity to pay off some long standing debt. it will be enough to cover off a couple of cards.
It was suggested to me to see if I can negotiate a final settlement amount with them.
Has anyone tried this and if so how much did you settle at vs. how much was actually owed?
thanks
It was suggested to me to see if I can negotiate a final settlement amount with them.
Has anyone tried this and if so how much did you settle at vs. how much was actually owed?
thanks
0
Comments
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Who suggested this ingenious plan?1
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It depends on how far in arrears you are. Ideally you'll have defaulted and the debt will have been sold on to a DCA for a decent discount.
If you're just a couple of payments behind, you're unlikely to get anything as they'll still expect full settlement.
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Yes they will normally settle for 120% of the amount owed the extra 20% because the trouble you have put them to1
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I'm not behind on payments, no arrears. Its just a long standing debt.Deleted_User said:It depends on how far in arrears you are. Ideally you'll have defaulted and the debt will have been sold on to a DCA for a decent discount.
If you're just a couple of payments behind, you're unlikely to get anything as they'll still expect full settlement.0 -
If it's non-defaulted debt, i.e. just longstanding balance on credit card, you won't get any discount.
Discounts only tend to come after you've trashed your credit file by defaulting and it's been sold off to a DCA. They may settle for less than the total, but not sure it's worth trashing your credit for the next six years to simply get a discount!2 -
OK thanks. It was just a suggestion from a FA. I thought I'd see if it was worth looking intonic_c said:If it's non-defaulted debt, i.e. just longstanding balance on credit card, you won't get any discount.
Discounts only tend to come after you've trashed your credit file by defaulting and it's been sold off to a DCA. They may settle for less than the total, but not sure it's worth trashing your credit for the next six years to simply get a discount!0 -
MerlinTheCat said:
It was just a suggestion from a FA.nic_c said:If it's non-defaulted debt, i.e. just longstanding balance on credit card, you won't get any discount.
Discounts only tend to come after you've trashed your credit file by defaulting and it's been sold off to a DCA. They may settle for less than the total, but not sure it's worth trashing your credit for the next six years to simply get a discount!
Christ.
You need to change your FA.8 -
Just pay it off. No credit card company is going to haggle! They don't 'settle'. You pay exactly what you owe. End of.MerlinTheCat said:
I'm not behind on payments, no arrears. Its just a long standing debt.Deleted_User said:It depends on how far in arrears you are. Ideally you'll have defaulted and the debt will have been sold on to a DCA for a decent discount.
If you're just a couple of payments behind, you're unlikely to get anything as they'll still expect full settlement.Please note - taken from the Forum Rules and amended for my own personal use (with thanks) : It is up to you to investigate, check, double-check and check yet again before you make any decisions or take any action based on any information you glean from any of my posts. Although I do carry out careful research before posting and never intend to mislead or supply out-of-date or incorrect information, please do not rely 100% on what you are reading. Verify everything in order to protect yourself as you are responsible for any action you consequently take.1 -
Just think in 2 months when you get a statement and the interest you will have to pay them is NIL!0
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If you can pay off any that offer a balance transfer 0% offer, even better - then you can kill off some of your debt faster1
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