Credit Card Debts

teecee8

I have credit card debts of around £25k. I have communicated with these companies and had managed to agree lower monthly payments with most of them. This will though still affect my credit scoring. I have managed to borrow some money through a family friend to consolidate and pay off the cc's. However, this is not £25k and I have been advised by a legal friend that I should offer less than the whole debt. Can anybody give me any advice on what to offer or what to put in the letter. I have been told that the cc companies may be prepared to take a lower offer on the basis of how long it will take for me to pay them back and that what I do offer, if accepted should be in full and final settlement. Any advice will be gratefully received?

Thanks

rayday2

Take a look at the national debt helpline website they have template letters and advice on what you are offering there.

inmypocketnottheirs

Are you actually in default with any agreements or is everything up to date?

Unless you are in serious default, most companies are unlikely to give you a reduction.

flaura

you need to work out a % you can afford to pay of each one i.e

you say you owe £25k on all and have some money to pay it of

say what you have is 60% of the £25k

then offer 60% of the debt you owe on each card and confirm that you will be offering the same % too each debtor.

the letters on the national debtline website work - i managed to pay off some of my debts on them..

if you haven't already done so the other thing to do is claim back any charges you have received on any of the credit cards before you offer to pay any money off - i did this and paid of 50% of what i owed to MBNA with my claim - that way you will be also borrowing less from your friend of a family family and reducing your debt not just moving it to someone else

xx

teecee8

Thanks for your help and advice. I havent been in default yet! I wasnt sure whether to try and claim back any money from charges before or after I offered them a payment?

I'll look at the website you suggested for templates. Thanks again.

loopylu36

flaura wrote: »

you need to work out a % you can afford to pay of each one i.e

you say you owe £25k on all and have some money to pay it of

say what you have is 60% of the £25k

then offer 60% of the debt you owe on each card and confirm that you will be offering the same % too each debtor.

the letters on the national debtline website work - i managed to pay off some of my debts on them..

if you haven't already done so the other thing to do is claim back any charges you have received on any of the credit cards before you offer to pay any money off - i did this and paid of 50% of what i owed to MBNA with my claim - that way you will be also borrowing less from your friend of a family family and reducing your debt not just moving it to someone else

xx

Hi

What charges can you claim for? I know they reduced things like late payment charge to £12.00 - is this legal or can you claim this back? I'm guessing that you are also referring to reclaiming PPI? Are they are any other charges that you can claim for?

Thanks

flaura

any late payment charges that are over £12 you can claim for - there's loads of advice on here as to what you can claim...

on the reclaim charges section...it's worth a try whatever because invariably it'll only cost you the price of a stamp..

flaura

http://www.moneysavingexpert.com/reclaim/