What to do?

chuk456

Hi, I’m new to this forum and wanted some advice re: what to offer NatWest for settlement of credit card debt. 

The debt arose due to coercive control and the bank have been aware and I’m making token £1 payments per month. I wrote to them for a write off but they said they don’t do write offs and I don’t qualify for ‘no longer pursue’ as I own my home (with mortgage). They said they do consider settlement offers. 

The debt is really affecting my mental health (I sent them the DMHEF form along with lots of evidence of abuse) as while I have it, I can’t disconnect financially from my ex, so a family member has said they’d help with a gift to settle it. But I don’t know what to offer? 

Been in default for 4 years and hasn’t been sold on if that’s any help, 

TIA 

Emmia

How much is the debt?

chuk456

It’s on a number of credit cards totalling £12k. From reading on this forum I can see I can only offer what I have, but I need to have a ball park figure of what’s reasonable to offer to start with and then see what my family member can offer,  and I don’t know what % is reasonable to offer the bank. Hope I’m not making it too complicated but I don’t know where to start. 

The bank hasn’t sold the debt btw. 

fatbelly

Start low, because this is a negotiation and you can always go up.

If they were to sell it the would get around 10%

So i'd start at 20% but see what others think

chuk456

@fatbelly thanks! Is it better to offer a figure say like £1,000 or phrase it as a %? 

fatbelly

I'd do both but i think the standard letter does it as a £ figure

https://www.nationaldebtline.org/sample-letters/full-and-final-settlement-offer/

chuk456

This is very helpful. Thanks @fatbelly. Is it ok to also speak to them on the phone for example if the offer is declined and they don’t counter? Or is that not advised? Im just thinking ahead as to whether it’s a back and forth via email and hopefully getting to a figure or whether they come back with a flat out no. I guess I’ll have a point where I can’t go any further though. 

fatbelly

I'd make the first offer in writing then try to finalise the deal by phone. Once agreed, get it confirmed in writing

chuk456

Ok will do. Thanks again @fatbelly. I’ll come back and update on how I get on. 

chuk456

Hello again. I spoke to my family member and they want me to start at 15%. Is this too low? If so, could too low an offer put the bank off negotiating at all? I get that they want me to offer as little as possible but I’m thinking it also has to be an attractive offer for the bank too. 

fatbelly

No, that's fine. I would expect them to come back with a much higher counteroffer but you never know.

If they just say No, then you will have to ask what figure they are thinking of.